HONOLULU, April 05, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ: FHB) announced today that it plans to release its first quarter 2024 financial results on Friday, April 26, 2024 before the market opens.   First Hawaiian will host a conference call to discuss the company’s results on the same day at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time). To access the call by phone, participants will need to click on the following registration link:   https://register.vevent.com/register/BIb74728f7f2a14341 ...

HONOLULU, April 05, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ: FHB) announced today that it plans to release its first quarter 2024 financial results on Friday, April 26, 2024 before the market opens. First Hawaiian will host a conference call to discuss the company’s results on the same day at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time). To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BIb74728f7f2a14341b302 ...

Employee and Diversity Statistics - As of December 31, 2023, the company had over 2,000 employees with an average tenure of 11.5 years[20] - The board of directors includes three women (33%) and six ethnically diverse individuals (67%)[25] - 63% of employees are women, 54% of management positions are held by women, and 86% of the workforce is ethnically diverse[25] Regulatory Environment - The company is subject to extensive regulation under federal and state banking laws, impacting growth potential and financial performance[32] - The company must obtain prior approval from the Federal Reserve for acquisitions that would result in owning 5% or more of any class of voting shares[46] - The company is primarily regulated by the FDIC and the Hawaii Department of Financial Institutions[37] - The company’s ability to pay dividends is subject to regulatory limitations and the financial condition of the bank[48] - The Federal Reserve requires bank holding companies to maintain sufficient net income to fund dividends, ensuring alignment with capital needs and asset quality[50] - The Bank is prohibited from paying dividends if it would become undercapitalized or if it is already undercapitalized, as per the Federal Deposit Insurance Act[63] - The Company is subject to regulatory capital requirements under Basel III and the Dodd-Frank Act, which impose specific capital measures and ratios[56] - The FDIA mandates that institutions categorized as undercapitalized must submit a capital restoration plan to their federal bank regulator[67] - Transactions with affiliates must be conducted on terms at least as favorable as those with unaffiliated third parties, as regulated by federal banking law[52] Financial Performance and Capital Adequacy - As of December 31, 2023, the Bank's CET1 capital ratio was 12.30%, total capital ratio was 13.48%, and Tier 1 leverage ratio was 8.57%, indicating strong capital adequacy[65] - The Company met all capital ratio requirements to be classified as well-capitalized, with a CET1 capital ratio of 12.39% and a total capital ratio of 13.57%[66] - The minimum capital ratios required under the Capital Rules include 4.5% CET1 to risk-weighted assets and 10.5% total capital to risk-weighted assets[58] - The capital conservation buffer of 2.5% is required on top of the minimum risk-weighted asset ratios, effectively raising the CET1 requirement to 7%[58] - The Bank's ability to accept brokered deposits is contingent upon its capital status, requiring it to be well-capitalized or adequately capitalized with a waiver from the FDIC[68] Income and Expense Analysis - Total noninterest income increased by $21.3 million or 12% to $200.8 million for the year ended December 31, 2023, compared to $179.5 million in 2022[296] - Service charges on deposit accounts rose to $29.6 million for the year ended December 31, 2023, an increase of $0.8 million or 3% compared to 2022[297] - Credit and debit card fees decreased by $2.1 million or 3% to $63.9 million for the year ended December 31, 2023, primarily due to increased network association dues[298] - Trust and investment services income increased by $2.0 million or 5% to $38.4 million for the year ended December 31, 2023, driven by higher investment management and business cash management fees[300] - Bank-owned life insurance (BOLI) income surged to $15.3 million for the year ended December 31, 2023, an increase of $14.1 million compared to 2022[301] - Total noninterest expense for the year ended December 31, 2023, was $501.1 million, an increase of $60.7 million or 14% compared to 2022[305] - Salaries and employee benefits expense was $225.8 million for the year ended December 31, 2023, an increase of $26.6 million or 13% compared to 2022, driven by a $12.7 million increase in base salaries[306] - Regulatory assessment and fees were $32.1 million for the year ended December 31, 2023, an increase of $22.5 million compared to 2022, primarily due to increases in FDIC insurance assessments[310] Credit Losses and Asset Quality - Provision for credit losses was $26.6 million for the year ended December 31, 2023, compared to $1.4 million in 2022, primarily due to increases in consumer loans and commercial real estate loans[293] - The allowance for credit losses (ACL) was $156.5 million as of December 31, 2023, representing 1.09% of total outstanding loans and leases, up from 1.02% in 2022[293] - Net charge-offs were $12.2 million for the year ended December 31, 2023, representing 0.09% of total average loans and leases[293] - Total Non-Performing Assets (NPAs) increased to $18.6 million as of December 31, 2023, a rise of $6.6 million or 55% from $11.996 million in 2022[382] - The ratio of NPAs to total loans and leases and Other Real Estate Owned (OREO) was 0.13% as of December 31, 2023, up from 0.09% in 2022[382] - The Allowance for Credit Losses (ACL) increased to $192.1 million at the end of 2023, up from $177.7 million in 2022[390] Deposits and Liquidity - Total deposits decreased by $356.4 million or 2% to $21.3 billion as of December 31, 2023, primarily due to a $951.1 million decrease in non-public demand deposits[404] - Public deposits amounted to $1.8 billion as of December 31, 2023, a decrease of $129.2 million or 7% compared to 2022[403] - The amount of deposits exceeding FDIC insurance limits was estimated at $10.8 billion or 51% of total deposits as of December 31, 2023[405] - The company took $500 million in FHLB advances in March 2023 to enhance liquidity amid banking sector volatility[334] Investment Securities and Loans - The carrying value of the investment securities portfolio was $6.3 billion as of December 31, 2023, a decrease of $1.2 billion or 16% compared to December 31, 2022[350] - Total loans and leases were $14.4 billion as of December 31, 2023, an increase of $261.5 million or 2% from December 31, 2022[362] - Commercial real estate loans increased by $207.9 million or 5% to $4.3 billion as of December 31, 2023, primarily due to completed construction loans converted to commercial real estate loans[364] - The total available-for-sale investment securities amounted to $2.6 billion as of December 31, 2023, with a weighted average yield of 2.04%[350] - The company held $3.5 billion in collateralized mortgage obligations issued by Ginnie Mae, Fannie Mae, and Freddie Mac as of December 31, 2023[352] Future Outlook and Strategic Initiatives - The company expects to meet its cash obligations through dividends from the Bank and other liquidity sources, including selling residential real estate loans and issuing long-term debt[337] - The company believes its existing cash and cash equivalents will be sufficient to meet cash requirements for the next twelve months and beyond[338] - The company has off-balance sheet arrangements that may affect its financial condition, including variable interest entities and guarantees[339] - The company will continue to monitor factors influencing expected credit losses, including economic uncertainty and inflation[394]

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", ...

Financial Data and Key Metrics Changes - The company reported a return on average tangible assets of 0.81% and a return on average tangible common equity of 13.66% [68] - The CET1 ratio was 12.39% and the total capital ratio was 13.57% [68] - Total deposit balances declined by $179 million, primarily due to a $584 million decrease in public deposits [72] - The total cost of deposits increased by 16 basis points to 156 basis points [72] - Net interest income decreased by $5.4 million to $151.8 million, with a net interest margin decline of 5 basis points to 2.81% [79] Business Line Data and Key Metrics Changes - Commercial criticized assets increased to 1.2% of total loans and leases, while classified assets fell to 19 basis points [75] - Period end loans and leases were $14.4 billion, with growth in C&I loans driven by dealer flooring [77] - Non-interest income was $58.3 million, an increase of $12.3 million from the prior quarter, influenced by non-recurring items [73] Market Data and Key Metrics Changes - The unemployment rate in Hawaii remained low at 2.9%, compared to the national rate of 3.7% [64] - Visitor arrivals in Hawaii were 5% higher than the previous year, with significant recovery in the Maui visitor industry [65] - The median sales price for single-family homes on Oahu was approximately $1 million, down 5% from December 2022 [66] Company Strategy and Development Direction - The company is focused on enhancing its strategy across three pillars: data, technology, and people, with significant investments in AI and digital offerings [8][56] - The company plans to reduce high-cost deposit balances and improve net interest margin through strategic balance sheet actions [69][88] - The company aims to maintain strong capital levels while cautiously considering share repurchase opportunities in 2024 [42] Management's Comments on Operating Environment and Future Outlook - Management believes that net interest margin has bottomed out and expects improvements as higher-cost deposits are reduced [67][88] - The company anticipates low-single digit loan growth for 2024, facing headwinds from weak demand for residential loans [71] - Management expressed confidence in the credit quality of the portfolio, despite some modest deterioration observed [81] Other Important Information - The company sold $526 million of low-yielding investment securities at a loss of $40 million, intending to use the proceeds to reduce high-cost deposits [69] - The company expects non-interest income to stabilize around $49 million to $50 million per quarter in 2024 [73] - The bank's commercial real estate exposure remains well diversified and of high quality, with office exposures manageable at 5.2% of total loans [84] Q&A Session Summary Question: What is the outlook for net interest margin as the Fed starts to cut rates? - Management indicated that they expect net interest margin to continue to grind higher, supported by the dynamics of the balance sheet and the runoff of the securities portfolio [96] Question: Can you provide context on commercial and retail deposit rates during the rising rate cycle? - Management noted that they have defined deposit customer segments and expect to reduce deposit rates in line with market trends when rates start to fall [10] Question: What are the expectations for credit normalization over the next two years? - Management is closely monitoring credit quality, particularly in commercial real estate, and has not observed significant weakness in the portfolio [50][81]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14585 FIRST HAWAIIAN, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 99-0156159 (State or Other ...

Part I Financial Information This section provides the company's interim consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for First Hawaiian, Inc. as of June 30, 2023. It includes the Consolidated Statements of Income, Comprehensive Income, Balance Sheets, Stockholders' Equity, and Cash Flows, along with detailed Notes to the Financial Statements covering accounting policies, segment information, and specifics on financial instruments [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This statement details the company's revenues, expenses, and net income for the second quarter and first half of 2023 compared to the prior year Consolidated Income Statement Highlights (Q2 & H1 2023 vs 2022) | Metric | Q2 2023 | Q2 2022 | YoY Change | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | $159.9M | $145.1M | +10.2% | $327.2M | $279.0M | +17.3% | | **Provision for Credit Losses** | $5.0M | $1.0M | +400% | $13.8M | ($4.7M) | N/A | | **Noninterest Income** | $47.3M | $44.1M | +7.3% | $96.4M | $85.5M | +12.7% | | **Noninterest Expense** | $120.9M | $109.2M | +10.7% | $239.4M | $213.2M | +12.3% | | **Net Income** | $62.4M | $59.4M | +5.1% | $129.3M | $117.1M | +10.4% | | **Diluted EPS** | $0.49 | $0.46 | +6.5% | $1.01 | $0.91 | +11.0% | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents the total comprehensive income, including net income and other comprehensive income components, for the second quarter and first half of 2023 - Total comprehensive income for Q2 2023 was **$61.4 million**, slightly below the net income of **$62.4 million**, due to a minor net comprehensive loss of **$1.1 million** from changes in investment securities and derivative hedges[14](index=14&type=chunk) - For the six months ended June 30, 2023, total comprehensive income was **$155.8 million**, which was **$26.5 million** higher than net income. This was driven by a significant positive net change in investment securities values during the period, reversing some of the prior year's large unrealized losses[14](index=14&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity as of June 30, 2023, compared to December 31, 2022 Balance Sheet Summary (as of June 30, 2023 vs. Dec 31, 2022) | Account | June 30, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$24.51B** | **$24.58B** | **-0.3%** | | Net Loans and Leases | $14.21B | $13.95B | +1.9% | | Total Investment Securities | $7.09B | $7.47B | -5.1% | | Goodwill | $0.995B | $0.995B | 0.0% | | **Total Liabilities** | **$22.15B** | **$22.31B** | **-0.7%** | | Total Deposits | $21.08B | $21.69B | -2.8% | | Borrowings (Short & Long-term) | $0.50B | $0.075B | +567% | | **Total Stockholders' Equity** | **$2.36B** | **$2.27B** | **+4.0%** | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement details the changes in the company's equity accounts, including net income, dividends, and other comprehensive income, for the six months ended June 30, 2023 - For the six months ended June 30, 2023, total stockholders' equity increased by **$90.7 million**, from **$2.27 billion** to **$2.36 billion**. The increase was primarily driven by net income of **$129.3 million** and a **$26.5 million** positive change in other comprehensive income, partially offset by cash dividends of **$66.3 million**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 Cash Flow Summary (Six Months Ended June 30) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $187.6M | $165.7M | | **Net Cash from Investing Activities** | $99.1M | ($599.0M) | | **Net Cash from Financing Activities** | ($255.2M) | $708.4M | | **Net Increase in Cash** | $31.5M | $275.2M | - The significant shift in financing activities from a large inflow in H1 2022 to an outflow in H1 2023 was primarily due to a net decrease in deposits of **$610.9 million** in 2023, compared to a net increase of **$785.3 million** in 2022. This was partially offset by proceeds from long-term borrowings of **$500 million** in 2023[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's significant accounting policies and other relevant financial information supporting the consolidated financial statements - The company adopted ASU No. 2022-02 on January 1, 2023, which eliminated the accounting guidance for Troubled Debt Restructurings (TDRs) and added enhanced disclosure requirements for loan modifications to borrowers experiencing financial difficulty[44](index=44&type=chunk) - The Allowance for Credit Losses (ACL) methodology utilizes a one-year reasonable and supportable forecast period for all loan classes, after which it reverts immediately to the long-run average loss rates[35](index=35&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=80&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the second quarter and first half of 2023. Key themes include net income growth driven by higher net interest income from the rising rate environment, which offset increased noninterest expenses and a higher provision for credit losses. The analysis covers detailed performance of operating segments, changes in the balance sheet including loan growth and deposit outflows, and management of credit, market, and liquidity risks. The economic environment in Hawaii shows stability, though uncertainties remain [Financial Highlights](index=87&type=section&id=Financial%20Highlights) This section summarizes the key financial performance indicators and balance sheet changes for the second quarter and first half of 2023 - Q2 2023 net income was **$62.4 million**, a **5% increase YoY**, driven by a **$14.8 million** rise in net interest income. Diluted EPS increased **7%** to **$0.49**[270](index=270&type=chunk) - H1 2023 net income was **$129.3 million**, a **10% increase YoY**, primarily due to a **$48.2 million** increase in net interest income. Diluted EPS rose **11%** to **$1.01**[272](index=272&type=chunk) - Total loans and leases grew **2%** to **$14.4 billion** as of June 30, 2023, from year-end 2022, while total deposits decreased **3%** to **$21.1 billion** over the same period[277](index=277&type=chunk)[281](index=281&type=chunk) - The company remained well-capitalized with a Common Equity Tier 1 (CET1) ratio of **12.05%** as of June 30, 2023, up from **11.82%** at year-end 2022[276](index=276&type=chunk) [Results of Operations](index=95&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's net interest income, provision for credit losses, noninterest income, and noninterest expense for the reported periods - Net interest margin for Q2 2023 was **2.91%**, up **31 basis points YoY**, driven by higher yields on the loan portfolio which increased by **178 basis points** to **5.22%**[285](index=285&type=chunk) - The provision for credit losses was **$5.0 million** in Q2 2023, up from **$1.0 million** in Q2 2022, primarily due to increased provisions for construction loans and home equity lines[297](index=297&type=chunk) - Noninterest income in Q2 2023 increased by **7% YoY** to **$47.3 million**, mainly due to a **$4.1 million** positive swing in Bank-owned life insurance (BOLI) income[301](index=301&type=chunk)[306](index=306&type=chunk) - Noninterest expense rose **11% YoY** to **$120.9 million** in Q2 2023, largely due to an **$8.0 million** increase in salaries and benefits, including severance costs, and a **$3.2 million** increase in equipment expense[308](index=308&type=chunk)[309](index=309&type=chunk) [Analysis of Financial Condition](index=116&type=section&id=Analysis%20of%20Financial%20Condition) This section analyzes the company's balance sheet components, including loans, deposits, borrowings, and asset quality, and their changes from year-end 2022 - Total loans and leases increased by **$270.8 million (2%)** since year-end 2022 to **$14.4 billion**, led by growth in commercial real estate, construction, and residential real estate loans[363](index=363&type=chunk) - Total deposits decreased by **$610.9 million (3%)** to **$21.1 billion** since year-end 2022, as decreases in demand and savings deposits were only partially offset by an increase in higher-cost time deposits[405](index=405&type=chunk) - Uninsured deposits were estimated at **$10.7 billion (51% of total deposits)** as of June 30, 2023. Excluding fully collateralized public deposits, the uninsured amount was **$8.5 billion (40% of total deposits)**[406](index=406&type=chunk) - The company increased its borrowings, holding **$500 million** in long-term FHLB advances as of June 30, 2023, compared to **$75 million** in short-term borrowings at year-end 2022, to enhance liquidity[408](index=408&type=chunk)[409](index=409&type=chunk) - Non-performing assets (NPAs) increased slightly to **$13.2 million (0.09% of total loans and OREO)** from **$12.0 million** at year-end 2022, primarily due to an increase in non-accrual home equity lines[383](index=383&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=153&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the detailed discussion of market risk within the Management's Discussion and Analysis (MD&A). The company's primary market risk is interest rate risk, which is managed through asset and liability management activities overseen by the ALCO. The company uses Net Interest Income (NII) simulation analysis to measure this risk and is currently positioned to benefit from rising interest rates - The company's primary market risk exposure is interest rate risk, managed by the Asset Liability Management Committee (ALCO)[425](index=425&type=chunk)[432](index=432&type=chunk)[447](index=447&type=chunk) Net Interest Income Sensitivity (Static Forecast as of June 30, 2023) | Interest Rate Change (basis points) | Estimated % Change in NII (Next 12 Months) | | :--- | :--- | | **Gradual Change** | | | +100 | +3.2% | | -100 | -3.4% | | **Immediate Change** | | | +100 | +5.7% | | -100 | -6.1% | [Item 4. Controls and Procedures](index=153&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2023. There were no material changes to the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report (June 30, 2023)[454](index=454&type=chunk) - No changes occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[455](index=455&type=chunk) Part II Other Information This section provides information on legal proceedings, risk factors, other disclosures, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=153&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation matters incidental to its business but does not expect any of the current proceedings to have a material adverse effect on its financial condition or results of operations - The company is party to various litigation matters incidental to its business but does not believe their resolution will have a material adverse effect[456](index=456&type=chunk) [Item 1A. Risk Factors](index=153&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes have been identified from the risk factors disclosed in the company's 2022 Form 10-K[457](index=457&type=chunk) [Item 5. Other Information](index=153&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2023, no directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the three months ended June 30, 2023[458](index=458&type=chunk) [Item 6. Exhibits](index=155&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including separation agreements with two executives, CEO/CFO certifications, and XBRL data files - Exhibits filed include separation agreements for Ralph M. Mesick and Lance A. Mizumoto, dated June 28, 2023[460](index=460&type=chunk) - Standard CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906 are included as exhibits[460](index=460&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q2 2023 was $62.4 million, or $0.49 per share, with a return on average tangible assets of 1.05% and return on average tangible common equity of 18.57% [5][6] - Total capital ratio was 13.17% and CET1 ratio was 12.05%, maintaining strong capital levels [5] - Noninterest income decreased by $1.7 million to $47.3 million, primarily due to lower BOLI income and credit/debit card fee income [8] Business Line Data and Key Metrics Changes - Period-end loans and leases increased by $142 million, or 1%, to $14.4 billion [6] - Retail and commercial deposits decreased by $964 million, or 4.9%, year-to-date, with public deposit balances increasing by $461 million [7][24] - Non-performing assets and loans 90 days or more past due were 11 basis points at the end of Q2, down 2 basis points from the prior quarter [26] Market Data and Key Metrics Changes - The statewide unemployment rate in Hawaii was 3% in June, lower than the national rate of 3.6% [4] - Total visitor arrivals in Hawaii were 802,000 in May, a 5.4% increase compared to May 2019 [4] - The median sales price for a single-family home on Oahu was $1.1 million, a 4.5% increase from June of the previous year [22] Company Strategy and Development Direction - The company aims to focus on relationship-based lending rather than credit-only deals, emphasizing the importance of liquidity and capital [48] - There is a strategic shift towards better pricing and structure in commercial real estate lending, both in Hawaii and on the Mainland [44] - The company is investing in technology and operational efficiencies to enhance digital offerings and customer service [65][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong credit quality despite economic uncertainties, with a focus on monitoring the commercial real estate segment [11][26] - The outlook for loan growth is projected to be in the low to mid-single-digit range for the full year [6][54] - Management noted that deposit outflows have shown signs of abating, with a trend towards stabilization [51] Other Important Information - The company exited approximately $55 million of non-relationship shared national credits during the quarter [6] - The allowance for credit loss increased by $1.5 million to $148.6 million, equating to 1.03% of total loans and leases [27] - The company maintained its quarterly dividend at $0.26 [5] Q&A Session Summary Question: What is the outlook for deposit outflows? - Management indicated that deposit outflows have been less severe in the current quarter compared to Q2, suggesting a potential stabilization trend [51] Question: Can you provide details on upcoming loan maturities? - Management discussed the NIM guidance and noted that new loan yields are currently higher than previous periods, indicating a more sustainable lending environment [36][58] Question: How is the company managing expenses amid margin pressures? - Management confirmed that they are focused on managing non-strategic expenses while continuing to invest in technology and personnel [66][82] Question: What is the company's strategy for new account growth? - The company is actively pursuing new deposit accounts through enhanced customer value propositions and improved digital offerings [38] Question: Can you clarify the company's exposure to criticized loans? - Management provided updates on specific criticized loans, indicating that they are comfortable with the overall credit quality of the portfolio [11][74]

July 28, 2023 1 Q2 2023 FINANCIAL HIGHLIGHTS1 (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. 2 1Includes Cash and due from banks and Interest-bearing deposits in other banks • ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14585 FIRST HAWAIIAN, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 99-0156159 (State or Other Jur ...