First Hawaiian, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $63.7 million ($0.52 per diluted share), compared to $73.4 million ($0.60 per diluted share) in the prior quarter and $73.8 million ($0.59 per diluted share) in the same quarter of the prior year.
• Net interest income increased $3.1 million to $174.1 million from the prior quarter and $4.8 million to $174.1 million from the prior year quarter.
• Net interest margin increased 5 basis points to 3.30% from the prior quarter (3.25%) and 11 basis points to 3.30% from the prior year quarter (3.19%).
• Noninterest income was $56.1 million, a decrease of $4.2 million from the prior quarter ($60.3 million) and $0.9 million from the prior year quarter ($57.1 million).
• Noninterest expense was $160.0 million, an increase of $29.6 million from the prior quarter ($130.4 million) and $34.3 million from the prior year quarter ($125.7 million).
• The efficiency ratio was 69.2% for the quarter, compared to 56.2% in the prior quarter and 55.3% in the prior year quarter.
• Provision for credit losses was $20.3 million, compared to $5.6 million in the prior quarter and $4.5 million in the prior year quarter.
• Net charge-offs were $21.9 million (0.60% of average loans annualized), compared to $4.1 million (0.11% annualized) in the prior quarter and $4.2 million (0.12% annualized) in the prior year quarter.
• Total assets were $23.8 billion, compared to $23.6 billion at June 30, 2026.
• Total loans and leases decreased $115.1 million to $14.5 billion.
• Total deposits increased $50.4 million to $20.2 billion.
• Allowance for credit losses was $164.4 million (1.14% of total loans), compared to $168.1 million (1.15%) at June 30, 2026.
• Total non-performing assets were $46.0 million (0.32% of total loans and other real estate owned), compared to $39.5 million (0.27%) at June 30, 2026.
• Total stockholders' equity was $2.8 billion.
• Common Equity Tier 1, Tier 1, and Total Capital ratios were 13.50%, 13.50%, and 14.74%, respectively, compared to 13.27%, 13.27%, and 14.52% at June 30, 2026.
• The effective tax rate was -27.8%, driven by a $31.0 million income tax benefit from a settlement agreement regarding 2016 corporate reorganization liabilities.

Guidance and Future Outlook:

• Management indicated the balance sheet is well-positioned to benefit from rising interest rates.
• The Company is preparing for the acquisition of Tri Counties Bank and is focused on building on its foundation and growth opportunities.

Business Segments and Product Lines:

• Commercial and industrial loans were $2.30 billion.
• Commercial real estate loans were $4.71 billion.
• Construction loans were $740 million.
• Residential mortgage loans were $4.00 billion.
• Home equity line loans were $1.18 billion.
• Consumer loans were $1.07 billion.
• Lease financing loans were $462 million.
• Merger-related costs for the quarter were $6.7 million.

Market and Competitive Landscape:

• Management noted deposit growth occurred in a competitive market, reflecting the strength of customer relationships.
• The Company operates 49 branches and 272 ATMs.

Risks and Challenges:

• A $20.3 million provision for credit losses was driven by a $12.5 million partial charge-off related to a single commercial real estate loan and other commercial real estate loan downgrades.
• Non-performing assets increased from $39.5 million in the prior quarter to $46.0 million.

Management Commentary and Tone:

• Bob Harrison, Chairman, President, and CEO, stated he was "pleased with the solid earnings we delivered this quarter and the continued trust our customers place in us."
• Management highlighted that deposit growth in a competitive market reflects the strength of customer relationships.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 27, 2026, to stockholders of record on November 16, 2026.
• The Company recorded a $24.3 million noninterest expense and a $31.0 million income tax benefit from an agreement to settle tax liabilities resulting from the 2016 corporate reorganization.
• The Company did not repurchase any shares in the third quarter.
• The Company announced it is preparing for the Tri Counties Bank acquisition.