Good day, and thank you for standing by. Welcome to the First Hawaiian, Inc. Q3 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kevin Haseyama, Investor Relations Manager. Please go ahead. Thank you, Kevin, and thank you everyone for joining us as we review our financial results for the third quarter of 2023. With me today are Bob Harrison, Chairman, President, and CEO, Jamie Moses, Chief Financial Officer, and Lee Nakamura, Chief Risk Officer. We have prepared a slide presentation that we'll refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the Investor Relations section. During today's call, we will be making forward-looking statements, so please refer to slide 1 for our safe harbor statement. We may also discuss certain non-GAAP financial measures. The appendix to this presentation contains reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measurements. Now I'll turn the call over to Bob. Morning, everybody. Thank you, Kevin. You know, before we get started, I just wanted to say a few words about what happened in Maui and the tragedy of the fires there on August 8th. It, you know, saddens all of us to see the loss of life and just the destruction that happened. I want to say thank you to our employees who are out there to support our customers and the community and everybody there. It's a very difficult situation. It's something we'll have to work through as a community over the next several years. But, the good news is our employees and retirees are safe. A number of them did lose their homes, and certainly we're outreaching to them to see how we can help. Our Lahaina branch was destroyed in the fire. We were able to, recover without any damage, all of our customer's safe deposit boxes, and we're able to return them to them. You know, and, and going up there a few times to meet with our customers and, and the community and, and most importantly, our employees, it really gives me a lot of hope that we can do this and do this in a way that, builds Lahaina back in a way that we're all comfortable with and proud of, so. And finally, on that note, I just want to say thank you to all of our friends and family and, and vendors, investors around the world, literally, that reached out to express their condolences and see how they could help if there was anything they could do. So thank you for that. And also, to start with an overview of the local economy. Hawaii economy actually remains strong. It is too early to really determine the impact of the fires on the economy of Maui or the state of Hawaii, but we do expect over time, the rebuilding activity will spur economic stimulus for that area and along with an eventual return of visitors. The mayor has declared that Maui will be fully open on November first. We don't think that will happen overnight. We think there will be a slower return of tourists to Maui over time. Statewide, seasonally adjusted unemployment rate in September was 2.8%, compared to the national unemployment rate of 3.8%. So some good news there. The visitor industry performed well on a year-to-date basis. Through August, total visitor arrivals were up 8% over the previous year, and total spend was 10% higher. Even more encouraging is the increase in arrivals from Japan, with year-to-date arrivals of 331,000 visitors, significantly higher than the prior year. However, we did see a downturn in arrivals after the Maui fires on August eighth. eighth. The total visitor arrivals in August were 7% below August of 2022, and visitor spend was 9% below August of 2022. The housing market has remained stable in spite of higher interest rates and reduced activity. Median sales price for a single-family home in Oahu in September was $1.1 million, 4.5% below last September, and the median sales price for condominiums in Oahu was $533,000, 6% higher than the previous year. Turning to slide two, I'll provide some highlights of our solid third quarter financial performance. Net income was $58.2 million, 46 cents a share, as we grew retail and commercial deposits. We continued to grow capital, and credit quality remained excellent. Our return on average assets was 0.97%, and return on average tangible common equity was 16.84%. We continue to maintain strong capital levels with a CET1 ratio of 12.2% and total capital ratio of 13.3% at quarter end. Turning to slide three, our balance sheet remains solid. Cash and cash equivalents were slightly elevated at the end of the quarter as we had anticipated an outflow from our public deposit accounts. The average balance of cash and cash equivalents in the quarter was $885 million. The $500 million of short-term borrowings at the end of the quarter was not new, but it was a transition and classification of the existing borrowing as it moved to less than 12 months maturity. We continue to have strong liquidity. As of September 30th, our total available liquidity was $8.3 billion, which was 100% of uninsured non-public deposits. The investment portfolio continued to perform consistently through the volatile interest rate environment. The duration remained stable at 5.5 years, and cash flows from the portfolio ran about $69 million per month, as expected. Turning to slide four, period-end loans and leases were $14.4 billion, about $30 million lower than Q2. We had good growth in CRE loans, primarily driven by about $150 million of completed construction loans that converted to CRE. The paydowns in the construction loans were largely offset by draws on ongoing projects. The decline in C&I balances was due to a combination of a decrease in dealer floor plan balances, seasonal line payoffs, and other loan payoffs. Looking forward, additional paydowns from completed construction projects will cause loan balances to be relatively flat in the fourth quarter. As a result, full year loan growth will be about 1%. Now I'll turn it over to Jamie. Thank you, Bob, and good morning, everyone. Turning to slide five, our deposit base continues to show its strength as we grew balances in the third quarter. Deposits totaled $21.5 billion, which was a linked quarter increase of $433 million, or 2.1%. The increase was driven by increases in retail, commercial, and public operating deposits. Retail and commercial deposits increased by $332 million, with commercial deposits up $238 million, and retail increasing by $94 million. Public deposit balances increased by $102 million in the quarter, with operating balances growing by $129 million, which was partially offset by a $28 million dollar decline in higher cost public time deposits. The ratio of non-interest bearing deposits to total deposits was 36.7%, which gets us back to roughly the 36% level we were at pre-COVID. Our total cost of deposits was 140 basis points in the third quarter, a 29 basis point increase from the prior quarter, due to higher rates paid and the continued shift in mix to higher rate deposit accounts. Turning to slide six, net interest income declined by $2.8 million from the prior quarter to $157.1 million. The decrease was primarily due to higher funding costs, partially offset by higher asset yields. The net interest margin declined by 5 basis points to 2.86%. The decline in margin was much less than the forecast we shared last quarter and was a direct result of the stabilization in deposit balances in the third quarter, enabling us to pay down higher cost public time deposits and relieve some of the deposit cost pressure. We anticipate that the NIM will trough in the mid 2.70 range sometime in the fourth quarter. Through the end of the third quarter, the cumulative betas were 40.7% on interest-bearing deposits and 25.5% on total deposits. Turning to slide seven, non-interest income was $46.1 million this quarter, a $1.3 million decline from the prior quarter. This decline was primarily due to lower BOLI income due to the higher interest rates. Expenses were $119.4 million, $1.5 million lower than the prior quarter. The third quarter included approximately $600,000 of expenses related to the Maui wildfires and typhoon that struck Guam, as well as $250,000 donation to the Maui Strong Fund. Now I'll turn it over to Lee. Thank you, Jamie. Moving to slide eight, the bank maintained its strong credit performance and healthy credit metrics in the third quarter. Commercial criticized assets ticked up to 1.07% of total loans and leases, driven primarily by a single credit downgraded to special mention. Classified assets fell 20 basis points to 0.21% of total loans and leases, primarily due to the payoff of a single loan. Year-to-date net charge-offs were $6.5 million. Our annualized year-to-date net charge-off rate was six basis points, four basis points lower than in the second quarter. Non-performing assets and ninety-day past due loans were 13 basis points at the end of the third quarter, up two basis points from the prior quarter. And lastly, the bank recorded a $7.5 million dollar provision for the quarter. Moving to slide nine, we show our third quarter allowance for credit losses broken out by disclosure segments. The asset ACL increased by $6.2 million- $154.8 million, with coverage rising five basis points to 1.08% of total loans and leases. The increase this quarter is due primarily to the estimated potential impact of the Maui wildfires. We've included a slide in the appendix that summarizes our Maui lending exposure. While it's too soon to assess the long-term economic impact that the fires will have on Maui, our preliminary estimate of the potential loss related to the fires is $9.1 million. This estimate includes the potential impact to borrowers located both inside and outside of the fire zones, as well as any insurance coverage. Turning to slide 10, we provide an updated snapshot of our commercial real estate exposure. CRE represents approximately 30% of total loans and leases. Credit quality remains strong, with LTVs manageable and criticized loans comprising, excuse me, continuing to comprise a very small portion of the portfolio. Criticized office CRE fell from 5.8% last quarter to 1.7% at the end of the third quarter. This decrease was due primarily to the previously mentioned loan payoff.... This loan was our only office property in downtown Los Angeles. Let me now turn the call back to Bob for any closing remarks. Thank you, Jamie and Lee. That concludes our prepared remarks. We'd be happy to take any of your questions. Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star one, one on your telephone. If your question has been answered, or you wish to move yourself from the queue, please press star one, one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Andrew Liesch with Piper Sandler. Your line is open. Hey, good morning, everyone. Morning. Morning. On the margin guide, mid-270s. So it looks like the pace of compression is going to pick up here in the fourth quarter. I guess, what's driving that? Well, you know, we still have some, we still have some deposit mix shift that's happening. You know, we're still, you know, we're still just kind of, you know, thinking through all of the, you know, all of the, all the dynamics of the balance sheet that are going to drive the NIM guide. You know, I think, you know, we have that continued mix shift from non-interest bearing to interest bearing. You know, we had some, had some things happen in the third quarter that went our way, you know, that we're not expecting or they're going to continue to go our way in terms of, you know, in terms of the NIM for the fourth quarter. Got it. And just to give more color on that, Andrew, the September spot NIM was 279. Okay. All right. Yeah, that's helpful then. So we could jump in. Yeah. Okay. You know, just a question on the criticized loans, sounds like just one new one that came in this quarter. But if you look at the entire book of criticized, is there anything consistent, any themes amongst all of the loans that are in that portfolio or those rates? Andrew, maybe I'll start. This is Bob, and hand it off to Lee. You know, we've just had very good loan quality, and one of the, the results of that is if, you know, there's one or two loans that go one way or the other, it moves the needle on, on the percentages. So, there's nothing out there that we're concerned about. We had talked in last quarter on the call about a couple, office loans. One of those was paid off, and that was a nice result for us, paid off in full, but, nothing that I'm seeing. Lee? No, I don't really have anything to add other than, you know, that particular loan, as with the other loans we've talked about before, they all have really strong sponsors, and we're very comfortable, and they continue to perform actually. So we're actually quite comfortable. Got it. All right, thank you for taking the question. I'll step back. Again, ladies and gentlemen, if you have a question or a comment at this time, please press star one, one on your telephone. One moment for our next question. Our next question comes from Kelly Motta with KBW. Your line is open. Hi, thanks so much for the question. I was hoping to dig a little bit more into the moving pieces of margin. It looks like your loan yields still went up really nicely. Just wondering, provided that the Fed is done hiking here, and I know that's a big assumption, what - how much of your loans still continue to reprice, kind of like on a quarter-over-quarter basis, assuming no rate changes? Because I know a lot of your loans are floating rate. Right. So, thanks, Kelly. Good morning to you as well. So we have about $5.2 billion in loans that are floating rate. So we'll, you know, kind of reprice pretty consistently. And then you add into that, our fixed rate cash flows kind of over a 12-month period. You can think about that as like another $1.5 billion on average that would reprice throughout the year. So, you know, assuming balances were flat. So you know, I think it's a pretty big number, in terms of our balances on the balance sheet that will reprice. Again, right, assuming rates stay flat, those will all reprice to the higher market rates today. And then adding to that, in the securities portfolio, that's another $700 million, really on a 12-month look forward. So about $2.2 billion of assets over the next 12 months repricing, Kelly. Got it. Repricing or turning into cash. Got it. And then on the deposit front, I was just wondering, maybe a two-parter. One, with your margin guidance expecting you to trough now in the fourth quarter, you know, as we look ahead to 2024, assuming the fourth quarter is a trough, what are you assuming for deposit stability thereafter? Do you think fourth quarter is they level off from here, the non-interest bearing, or does that outlook still assume some headwinds, although maybe a little less than what we've been seeing the last two quarters? Yeah, no, I think there's a lot less headwinds than we've seen. We're seeing the pace of change slow down dramatically. You know, we would expect that first quarter, you know, again, right, flat rates, we're expecting a trough here in Q4. And then we would actually expect to start to see the NIM grind two, three basis points higher, again, right? Given flat interest rates at this point in time. So, you know, we're encouraged by the stability of the deposit base, and we're encouraged with the dynamics that we see, you know, but more recently relative to earlier in the year. So I think it's a generally pretty stable and good story for us heading into the end of this year and into next year. Got it. I guess just asking a little bit in a little different way, does that assume, I guess, do you need the non-interest-bearing stability in order to get that margin improvement ahead? Or, you know, does that, that guidance of inflection off Q4 still assume a modest, you know, downtick in non-interest-bearing deposits? Yeah. Yes, yeah, yep, you know, no, good question, Kelly. I mean, I think we would still have an ability to have the margin go, go higher, even with slight downticks in the non-interest-bearing deposits. You know, again, we're right at the level where we were pre-COVID. So, you know, don't want to declare victory on that yet, but, you know, I don't think we're thinking too much lower from this point. But we also have the phenomenon of all those cash flows repricing over time as well, right? Those fixed-rate loans that are coming off, but then repricing to higher levels as we go forward. So, it's not entirely dependent on the deposit forecast, I would say. Got it. Thanks so much for that color, Jamie. Last kind of question for me, and then I'll step back. You know, again, I'm so sorry about the Maui wildfires. My heart goes out to all those people and your employees and customers there. I am wondering, have you seen cash flows related to insurance payments and relief funds impact your deposit flows at all? And how should we be thinking about that, if at all, at this point? Kelly, this is Bob. That's a great question, and we have started to see insurance payouts happen, which is great. I mean, the insurers have been very proactive being out in the field and trying to help their customers, both the individuals and, and businesses. We haven't seen a significant amount on our balance sheet as yet, but that could happen over time. Okay, thanks so much for the color. I'll step back. One moment before our next question. Our next question comes from David Feaster with Raymond James. Your line is open. Hey, good morning, everybody. Good morning. Good morning. Maybe just kind of following up on that. At the outset, you talked, you know, a bit about, you know, the, you know, maybe tourism doesn't come back, you know, as quickly as, you know, end of November, like we were talking about or the early November. And, you know, ultimately kind of a stimulating impact from an economic perspective, over time. I'm just kind of curious, how—like, how do you, how do you think this plays out and, you know, maybe the timeline and just some of the broader economic backdrop from your perspective, given all that's going on? Yeah, Dave, I'll let me start. There's a number of things going on. This is obviously very complicated. I think what by the mayor setting a November first open date, what that does, it allows people to plan. It, it's not to plan to start coming back on November first, but it's to plan, "Oh, I can come back to Maui." And the key one of the key periods for tourism here in the islands is the holidays, and so that gives people, you know, do I want to come back over the Thanksgiving holiday? Do I want to make plans over the Christmas and New Year's holidays? It opens up that planning window. So I do believe you will start to see activity start to come back over the holidays, maybe not as soon as Thanksgiving, but probably over the, you know, Christmas and New Year's holidays. That's an estimate on my part. That's not an official forecast by UHERO, but, you know, that just gives people, individuals, time to think about that. The pace of recovery and the taking care of things on the ground in Lahaina, everybody would like it to move faster, but there's a pace that this goes at. The EPA is there. They've made a tremendous amount of progress. I saw an article yesterday, they had about 85% removal of hazardous materials. FEMA has been on the ground, been very proactive. I was talking to a friend of mine who has boat operations in Maui, in Lahaina. Yesterday, he said that the Coast Guard has taken out 90 vessels out of... or I'm sorry, 80% of the vessels out of about 100 that are out there, that have been removed. So you know, the federal authorities are on the ground doing good work, doing stuff, but it will take time. And I think that's the thing that it's really hard to forecast. So when insurance money will come in, when work will get done. But on the tourism side, we have started to see that not only people redirecting out of Maui to other Hawaii Islands, but, but also, you know, hopefully making plans to go back to Maui in the near future. Yeah. Okay, that makes sense. I appreciate that. And maybe just touching on, on the loan side, you know, appreciate the commentary. Loans, loans are going to be relatively flattish. I'm just curious how much of this, you know, we talked about the construction paying off. We had some headwinds from, the dealer floor plan. I'm just curious, how is demand from your perspective? And, how much of the slowdown in loan growth is, you know, push versus pull, right? I mean, a weaker demand versus maybe you're having less appetite for loan growth at this point in the cycle. I'm just curious, you know, some of the puts and takes on, on that side. Sure. Great question. We're still very interested in doing loans that we feel make sense for us, and we can support our customers. So it's not us slowing down posture, but we have seen a softening in demand. And so I think that's what it is. We had thought that there would be higher floor plan balances, and they were down marginally. But you know, the strikes created uncertainty as well. And hopefully, that's you know, being resolved. But you know, those the loan demand does seem to be softer, certainly in the consumer side, with residential, it's down dramatically. HELOC has softened a bit, so you know, it it's much more demand-driven than supply-driven for us. Okay. That makes sense. I guess last one from me, just on, on the capital front. I mean, you know, regulatory capital is pretty strong. You know, TCE kind of held steady here. I'm just curious how you think about capital priorities at this point in the cycle. Is capital preservation still paramount, or just curious whether there's any opportunities that you see for capital deployment? You know, I mean, I think we're kind of in the same boat that we have been in over the past couple quarters, Dave. You know, TCE is still probably a little lower than we'd like it to be. You know, in the uncertain rate environment, you know, we'll see how that sort of plays out. We feel good about the regulatory ratios, clearly. You know, but, you know, no new plans in terms of, you know, executing on the buyback at the moment. Continue to, you know, feel good about, you know, the dividend and the way that we've been thinking about our capital over the past couple of quarters. No real changes in that regard. Is there any, you know, any change in the thoughts on rate sensitivity management or, you know, hedging, I mean, you know, the impacts from higher rates was, you know, better than I think some had feared on the AOCI front. I'm just curious, as you think about managing rate sensitivity, has there been any change in your thoughts? Just assuming we're in a higher environment. Right. You know, I wouldn't, you know, not, I wouldn't say that there's been necessarily a change. You know, I mean, we're aware of some of the actions that folks have been taking over the, you know, over the past quarter. You know, we're continuing to monitor those sorts of things. You know, I think, you know, as time goes by, it seems like maybe we get more and more open to some changes, but, you know, nothing imminent from that perspective. We're aware of what's going on out there. We see what people are doing. We understand why they're doing those things. And, you know, every balance sheet is different, and ours is different than others as well. So, you know, we're aware of what's going on, and you know, we're continuing to look at it. Perfect. Thanks, everybody. One moment for our next question. Our next question comes from Christian DeGrasse with Goldman Sachs. Your line is open. Good morning. Thanks for the question. Good morning. Hey, Christian. So, correct me if I'm wrong, but just looking at the slides and comparing it with last quarter, it looks like that one credit that went into the criticized bucket was in multifamily. We've heard some other banks kind of beginning to point to some signs of really early signs of stress in multifamily, just given rising interest rates and, you know, pretty expensive funding costs there. Can you maybe just talk about what you're seeing, you know, broadly in your multifamily book, as well as, you know, if I'm correct, what is happening and what you're seeing with that specific credit? Thank you. Oh, well, great question, Christian. This is Bob Harrison. We don't comment on specific credits, but I think more broadly on multifamily, we're very comfortable with the underwriting we've had over the last any number of years as we've kind of pursued that strategy. There was a credit that is, I think Lee was talking about, that was very strong sponsorship that, you know, she can speak to if, if, I'll turn it over to her. But I think more broadly, we're very comfortable with the underwriting we've done. In fact, one of the things pressuring our loan balances in Q4 is a number of our multifamily projects are coming to completion, and they're getting paid off, either through refinance or, you know, other ways. So that's, to me, the ultimate, you know, judgment on our underwriting, is they're performing exactly as we expected them to. But Lee, anything to add? No, I don't really have anything to add other than, we had a strategy going in, right? That we would stick to gateway cities. We would always seek out strong sponsors that we knew very well, or, if it was a syndicated deal where we knew the bank, that was the agent. And so we've actually benefited from all that, because while we recognize that in the industry, there are some concerns, we are actually still very comfortable with our position. Thank you. One moment before our next question. Our next question is a follow-up question from Andrew Liesch with Piper Sandler. Your line is open. Hey, thanks for taking the follow-up. Do you have the balance of Shared National Credits that are outstanding right now? ... We do. Give us just a minute, Andrew. I think it's $1.73 billion. And actually, for the quarter, the Hawaii portion of that went up, and the mainland portion of that went down. Okay. Very helpful. Thanks so much. One moment before our next question. Our next question is a follow-up question from Kelly Motta with KBW. Your line is open. Hey, thank you guys so much for taking the follow-up. I was just hoping to get a bit more color on the expense front, backing out some of the natural disaster-related expenses you called out. They were relatively flat. Just wondering, as you look ahead, anything you know we should be keeping in mind in terms of investment that could elevate that? And maybe if you could comment on any inflationary pressures you may or may not be seeing, and how that kind of feeds into how we should be looking at expenses as we close out the year and into 2024. Sure. Yeah. So, you know, we're not ready to give guidance on 2024 yet, Kelly. But I would say, you know, Q4, we would expect our expenses to be flat to down or so, from Q3. So, you know, we feel pretty good about the expense run rate as it exists today from Q3 to Q4, so. Yeah, and this is high season for our budget process, so we're not, we're not looking to 2024 just yet. But thank you for the question. Thank you so much. I'm not showing any further questions at this time. I'd like to turn the call back over to Kevin for any closing remarks. Thanks. We appreciate your interest in First Hawaiian, and please feel free to contact me if you have any additional questions. Thanks again for joining us, and have a good weekend. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.