First Hawaiian, Inc. · NASDAQ:FHB

First Hawaiian — Investor Presentation (February 2024)

18 slides from First Hawaiian's investor presentation, Feb 9, 2024

  1. Slide 1: Investor Presentation

    Investor Presentation February 9, 2024 0

  2. Slide 2: Disclaimer

    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 vi

  3. Slide 3: Investment Highlights

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

  4. Slide 4: Strong, Consistent Financial Performance

    STRONG, CONSISTENT FINANCIAL PERFORMANCE Pre-Tax, Pre-Provision Earnings ($mm)(1) Stable Earnings Drivers $380 $387 $380 $395 $365  Dominant loan and deposit positions in attractive $359 $365 $357 $355 $353 $353 $336 markets $310  Consistent underwriting standards with proven Consistent performanc

  5. Slide 5: Leading Position in an Attractive Market

    LEADING POSITION IN AN ATTRACTIVE MARKET Branch Presence Financial Overview – 12/31/2023 ($ billions) 50 branches Market Cap $2.9 Loans $ 14.4 Kauai Assets $ 24.9 Deposits $ 21.3 Oahu ROATCE(2,5) ROATA(2,5) Efficiency Ratio(5) Niihau Molokai Honolulu Maui 59.5% 17.4% 1.0% 1.0% 57.9% Lanai 13.9% Saip

  6. Slide 6: Hawaii Banking Market Dominated by Local Banks

    HAWAII BANKING MARKET DOMINATED BY LOCAL BANKS The top 4 banks account for ~93% of deposits(2) Branches 50 51 35 27 FTEs 2,089 1,899 968 720 Assets ($bn) 24.9 23.7 9.7 7.6 Loans ($bn) 14.4 14.0 6.2 5.4 Deposits ($bn) 21.3 21.1 8.1 6.8 2023 ROATCE (1) 17.4% 14.3% 13.2% 12.4% 2023 ROATA(1) 0.99% 0.72%

  7. Slide 7: Hawaii Banks Have a Significant Deposit Advantage

    HAWAII BANKS HAVE A SIGNIFICANT DEPOSIT ADVANTAGE Hawaii banks experience more favorable deposit behavior across all rate cycles; Hawaii banks experienced a deposit beta(¹) of ~34% vs. ~47% for broader U.S. banks during the last rising rate cycle 6.00 % 5.50 % 5.25 % 5.33 % 5.00 % 4.50 % 4.00 % 3.50

  8. Slide 8: Solid, Low-Cost Core Deposit Base

    SOLID, LOW-COST CORE DEPOSIT BASE Strong brand, deep ties to the community and a leading market share position have driven an attractive, low-cost deposit base Deposit Portfolio Composition (as of 12/31/23) Deposits Well-Balanced Between Retail and Commercial ($ billions) Public Time at 12/31/23 4%

  9. Slide 9: High-Quality, Balanced Loan Portfolio

    HIGH-QUALITY, BALANCED LOAN PORTFOLIO Steady through the cycle organic loan growth and balanced loan portfolio Balanced Loan Portfolio (as of 12/31/23) Loan Portfolio Highlights (as of 12/31/23) Credit Card Other $327 mm Consumer Loans: $14.4 bn 2% $90 mm  Largest Hawaii-based lender 1% Consumer C&

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

    PROVEN, CONSISTENT, AND CONSERVATIVE CREDIT RISK MANAGEMENT Strong through the cycle credit performance driven by conservative approach to credit risk management NCOs / Average Loans NPAs + 90s / Loans + OREO 1.50% 3.50% 3.10% 3.00% 0.95% 1.00% 2.50% 0.73% 2.00% 1.50% 0.50% 0.21% 0.47% 0.10% 0.12% 1

  11. Slide 11: Proven Through the Cycle Performance

    PROVEN THROUGH THE CYCLE PERFORMANCE Consistent Deposit Growth ($bn) Steady, Balanced Loan Growth ($bn) $14.4 $21.3 $6.5 $9.1 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 22 23 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 23 As of December 31 As of December 31 Throu

  12. Slide 12: Well-Capitalized with an Attractive Dividend

    WELL-CAPITALIZED WITH AN ATTRACTIVE DIVIDEND Robust Capital Position (As of 12/31/23) Attractive Dividend Yield(1)(2) Tier 2 14.5% 4.5% NCT1 CET 1 13.6% 3.2% 1.9 % 1.2 % 0.5 % First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets 12.4 % 12.1 % Capital Management Approach  Retain sufficien

  13. Slide 13: Appendix

    fr First Hawaiian, Inc.

  14. Slide 14: Full Suite of Products and Services

    FULL SUITE OF PRODUCTS AND SERVICES First Hawaiian is a full-service community bank focused on building relationships with our customers Commercial Lending Consumer Lending • Largest commercial lender in Hawaii • Services provided to individuals and small • 62 commercial bankers(2) to mid-sized busi

  15. Slide 15: Hawaii Is an Attractive Market with Strong Economic Fundamentals

    HAWAII IS AN ATTRACTIVE MARKET WITH STRONG ECONOMIC FUNDAMENTALS Hawaii GDP by Industry (2022)(1) Fundamental Strengths • Attractive destination for domestic and Visitor spending is ~19% of Hawaii GDP(2) international travelers • Attractive alternative for travelers concerned about international tra

  16. Slide 16: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share, tangible stockholders’ equity to tangible assets and pre-tax, pre-provision earnings are non-GAAP financial measures. We compute our return on average t

  17. Slide 17: GAAP to Non-GAAP Reconciliation - Annual

    GAAP TO NON-GAAP RECONCILIATION - ANNUAL As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2023 2022 2021 2020 2019 Net Income $ 235.0 $ 265.7 $ 265.7 $ 185.8 $ 284.4 Average Total Stockholders’ Equity $ 2,346.7 $ 2,321.6 $ 2,708.4 $2,698.9 $ 2,609.4 Les

  18. Slide 18: GAAP to Non-GAAP Reconciliation - Annual (Continued)

    GAAP TO NON-GAAP RECONCILIATION - ANNUAL (CONTINUED) As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $ 264.4 $ 183.7 $ 230.2 $ 213.8 $ 216.7 $ 214.5 $ 211.1 $ 199.7 Average Total Stockholders’ Equity $

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