First Hawaiian, Inc. · NASDAQ:FHB

First Hawaiian — Investor Presentation (September 2022)

23 slides from First Hawaiian's investor presentation, Sep 2, 2022

  1. Slide 1: Investor Presentation September 2022

    0 Investor Presentation September 2022

  2. Slide 2: Disclaimer: Forward-Looking Statements

    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 refl

  3. Slide 3: Q2 2022 Financial Highlights

    Q2 2022 FINANCIAL HIGHLIGHTS 1 (1) Comparisons to Q1 2022 (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) Dec

  4. Slide 4: Balance Sheet Highlights

    BALANCE SHEET HIGHLIGHTS 3 $ in thousands 6/30/22 3/31/22 Assets Int - bearing Deposits in Other Banks $ 1,254.0 $ 1,352.1 Investment Securities - AFS 3,967.7 8,062.4 Investment Securities - HTM 4,093.2 --- Loans and Leases 13,262.8 12,891.7 Total Assets 25,377.5 25,042.7 Liabilities Deposits $ 22,6

  5. Slide 5: Investment Highlights

    INVESTMENT HIGHLIGHTS 4 Strong, Consistent Financial Performance Leading Position In Attractive Markets Experienced Leadership Team High Quality Balance Sheet Proven Through The Cycle Performance Well - Capitalized With Attractive Dividend 1 2 3 4 5 6

  6. Slide 6: Strong Performer in Attractive Market

    NALs / Loans 58.2% 56.1% FHB Peer Median 16.8% 14.4% FHB Peer Median STRONG PERFORMER IN ATTRACTIVE MARKET 5 Branch Presence Financial Overview – 2Q 2022 YTD ($ billions) Source: Public filings and S&P Global Market Intelligence as of 31 - Aug - 2022 Note: Financial data as of 30 - Jun - 2022. Marke

  7. Slide 7: Fundamental Strengths of Hawaii's Economy Remain Intact

    DESPITE NEAR - TERM CHALLENGES, THE FUNDAMENTAL STRENGTHS OF HAWAII’S ECONOMY REMAIN INTACT 6 • Attractive destination for domestic and international travelers • Attractive alternative for travelers concerned about international travel • Well - developed visitor industry infrastructure • High qualit

  8. Slide 8: Strong Performance Through the Cycle

    $9.1 $22.6 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2Q22 Source: Public filings and S&P Global Market Intelligence as of 31 - Aug - 2022 Note: Financial data as of 30 - Jun - 2022. $10 – $50bn banks constituted as of 31 - Dec - 2021; excludes merger targets. (1) ROATCE (Return on

  9. Slide 9: Consistent Track Record of Strong Profitability

    $ 359 $ 365 $ 357 $ 355 $ 353 $ 380 $ 387 $ 380 $ 395 $ 365 $ 310 $ 151 $ – $ 50 $ 100 $ 150 $ 200 $ 250 $ 300 $ 350 $ 400 $ 450 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2Q22 1.40% 1.47% 0.89% 1.13% 0.98% 0.92% 1.37% 1.03% 1.34% 1.15% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2011 2012

  10. Slide 10: Proven, Consistent, and Conservative Credit Risk Management

    0.21% 0.73% 0.08% 0.10% 1.05% 0.02% 0.00% 0.50% 1.00% 1.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2Q22 PROVEN, CONSISTENT, AND CONSERVATIVE CREDIT RISK MANAGEMENT Strong through the cycle credit performance driven by conservative approach to credit risk management 9 Year En

  11. Slide 11: Well-Capitalized with an Attractive Dividend

    WELL - CAPITALIZED WITH AN ATTRACTIVE DIVIDEND 10 Source: Public filings and S&P Global Market Intelligence as of 31 - Aug - 2022 Note: Financial data as of 30 - Jun - 2022. $10 – $50bn banks constituted as of 31 - Dec - 2021, excludes merger targets. Percentages m ay not total due to rounding. (1)

  12. Slide 12: Appendix

    Appendix (AN First Hawaiian, Inc.

  13. Slide 13: Full Suite of Products and Services

    FULL SUITE OF PRODUCTS AND SERVICES 12 • Largest commercial lender in Hawaii • 58 commercial bankers (2) • Relationship - based lending • Primary focus on Hawaii, additional focus on California • C&I, leases, auto dealer flooring, CRE, and C&D • Strong relationships with proven local real estate dev

  14. Slide 14: A Leader in Hawaii

    A LEADER IN HAWAII 13 The banking market in Hawaii is dominated by local banks, with the top 4 banks accounting for ~93% of deposits Sources: S&P Global Market Intelligence, FDIC, SEC and company filings. Company filings used for peers where available, othe rwi se regulatory data used. Note: Financi

  15. Slide 15: Balance Sheet Well Positioned to Benefit from Rising Rates

    BALANCE SHEET WELL POSITIONED TO BENEFIT FROM RISING RATES 14 18 bp NIM increase in 2Q Well Positioned for Rising Rates 2.0 % 3.9 % 4.0 % 7.8 % Ramp Immediate Change NII Sensitivity +100bps NII Sensitivity +50bps • Approximately $5.1 bn, or 39% of the loan portfolio, reprices within 90 days • Well -

  16. Slide 16: Solid, Low-Cost Core Deposit Base

    $8.9 $9.1 $9.4 $10.2 $10.5 $12.2 $12.9 $13.6 $14.7 $16.1 $16.8 $17.6 $17.2 $16.4 $19.2 $21.8 $22.6 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2Q22 Demand 42% Money Market 18% Savings 26% Time 7% SOLID, LOW - COST CORE DEPOSIT BASE Strong brand, deep ties to the community and a l

  17. Slide 17: Steady Organic Growth and Balanced Loan Portfolio

    $6.4 $6.5 $7.9 $8.0 $8.3 $8.3 $9.0 $9.5 $10.0 $10.7 $11.5 $12.3 $13.1 $13.2 $13.3 $13.0 $13.3 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2Q22 STEADY ORGANIC GROWTH AND BALANCED LOAN PORTFOLIO Steady through the cycle organic loan growth and balanced loan portfolio Expect mid - t

  18. Slide 18: Demonstrated History of Disciplined Expense Management

    46.5% 45.3% 45.4% 46.1% 48.1% 47.0% 47.3% 49.0% 48.4% 50.1% 56.5% 58.2% 60.3% 60.3% 62.2% 61.9% 61.1% 59.2% 58.3% 55.8% 55.7% 55.6% 57.1% 56.1% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2Q22 YTD First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of

  19. Slide 19: Asset Quality: Credit Costs and Problem Loan Levels Remain Low

    ASSET QUALITY CREDIT COSTS AND PROBLEM LOAN LEVELS REMAIN LOW 18 • 30 - 89 past due comprised of accruing and non - accruing loans Note: TLL - Total Loans and Leases • 90 past due comprised of accruing loans • Includes OREO

  20. Slide 20: Hawaii Banks Have a Significant Deposit Advantage

    0.00 % 0.50 % 1.00 % 1.50 % 2.00 % 2.50 % 3.00 % 3.50 % 4.00 % 4.50 % 5.00 % 5.50 % 6.00 % 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

  21. Slide 21: GAAP to Non-GAAP Reconciliations

    GAAP TO NON - GAAP RECONCILIATIONS We present pre - tax, pre - provision earnings on an adjusted basis as a non - GAAP financial measure. We believe that the presentation of this non - GAAP financial measure helps identify underlying trends in our business from period to period that could otherwise

  22. Slide 22: GAAP to Non-GAAP Reconciliation

    GAAP TO NON - GAAP RECONCILIATION 21 ( 1) Annualized for the three and six months ended June 30, 2022 and 2021, and three months ended March 31, 2022 (dollars in thousands, except per share amounts) Income Statement Data: Net income $ 59,360 $ 57,719 $ 86,741 $ 117,079 $ 144,434 Income Before Provis

  23. Slide 23: GAAP to Non-GAAP Reconciliation - Annual

    GAAP TO NON - GAAP RECONCILIATION - ANNUAL 22 Note: Totals may not sum due to rounding. As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $265.7 $185.8 $ 284.4 $ 264.4 $ 183.7 $230.2 $213.

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