First Hawaiian : FHB Investor Presentation - September 2023

Investor Presentation

September, 2023

DISCLAIMER

Forward-Looking Statements

This presentation contains, and from time-to-time in connection with this presentation our management may make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our views at such time 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 these 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, and any such forward-looking statements are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, including (without limitation) the domestic and global economic environment and capital market conditions and other risk factors, can be found in our SEC filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022, and our Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2023, which are available on our website (www.fhb.com) and the SEC's website (www.sec.gov). Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Use of Non-GAAP Financial Measures

The information provided herein includes certain non-GAAP financial measures. We believe that these measures provide useful information

about our operating results and enhance the overall understanding of our past performance and future performance. Although these non- GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The reconciliation of such measures to the comparable GAAP figures are included in the appendix of this presentation.

Other

References to "we," "us," "our," "FHI," "FHB," "Company," and "First Hawaiian" refer to First Hawaiian, Inc. and its consolidated

subsidiaries.

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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 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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MAUI UPDATE

MAUI REAL ESTATE-SECURED LOANS1

			All	Maui
$ mm	Lahaina	Kula	Other
Total
			Areas
CRE	29.9	5.9	366.3	402.0
Construction	0.3	2.3	51.1	53.7
Residential
1st position	59.0	21.0	1,034.2	1,114.1
(includes HELOCS
behind FHB 1st)
Subordinate	3.1	3.1	53.8	60.0
position
Total	92.2	32.2	1,505.4	1,629.8

MAUI C&I LOANS1

	$ mm
Maui-based firms	12.0

MAUI CONSUMER LOANS1

	$ mm
Direct and Indirect Auto	72.6
Credit Card	13.2
All Other Consumer	11.2

1Outstanding balances as of 7/31/23

MAUI REAL ESTATE SECURED LOAN LOCATIONS

Lahaina

Kula

COMMENTS

• Lahaina and Kula were the primary populated areas impacted by wildfires
• Fire insurance on residential mortgages required and force- placed if necessary
• We expect modest expenses attributable to Maui fire recovery and restoration
• FHB has no loans outstanding to the electric utility
• FHB Maui relief and assistance programs:
• • 6-monthdeferrals for residential mortgage and home equity loans in fire zones
  • 3-monthdeferrals on all other Maui loans upon request
  • Waiving all ATM fees on Maui

• Donated $250k to Maui Strong Fund

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