Slides
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0 3rd Quarter 2025 Earnings Call October 24, 2025
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FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views 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 those 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, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward- looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. 1
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Q3 2025 FINANCIAL HIGHLIGHTS1 (1) Comparisons to Q2 2025 (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 October 22, 2025. Payable November 28, 2025 to shareholders of record at close of business on November 17, 2025. 2 • Net income: $73.8 mm • Cost of deposits: 1.38% • Total cost of funds: 1.41% • Net interest margin increased 8 bp to 3.19% • Excellent credit quality. Recorded $4.5 mm provision • 23.2% effective tax rate • Well capitalized: 13.2% CET1 ratio • Declared $0.26 / share dividend Q3 2025 Q2 2025 Net Income ($mm) $73.8 $73.2 Diluted EPS $0.59 $0.58 Net Interest Margin 3.19% 3.11% Efficiency Ratio 55.3% 57.2% ROA / ROATA2 1.22% / 1.27% 1.23% / 1.28% ROE / ROATCE2 10.81% / 17.08% 11.03% / 17.61% Tier 1 Leverage Ratio CET1 Capital Ratio Total Capital ratio 9.16% 13.24% 14.49% 9.12% 13.03% 14.28% Dividend3 $0.26 / share $0.26 / share
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Q3 2025 BALANCE SHEET HIGHLIGHTS1 3 $ in millions 9/30/25 6/30/25 Assets Cash and Cash Equivalents2 $ 1,855.6 $ 1,399.0 Investment Securities - AFS 1,986.7 1,891.7 Investment Securities - HTM 3,594.2 3,658.8 Loans and Leases 14,129.4 14,351.9 Total Assets 24,098.7 23,837.1 Liabilities Deposits $20,729.6 $20,231.4 Short-term borrowings - 250.0 Total Stockholders’ Equity 2,733.9 2,694.5 (1) Comparisons to June 30, 2025 (2) Includes Cash and due from banks and Interest-bearing deposits in other banks (3) TBV/share (tangible book value per share) is a non-GAAP financial measure. A reconciliation of TBV/share to the comparable GAAP measurement is provided in the appendix of this slide presentation • Total loans and leases decreased $222.5 mm • Total deposits increased $498.1 mm • $250 mm FHLB advance repaid at maturity • Repurchased 964 thousand shares of common stock, at a total cost of $24 million • TBV/share3 increased to $14.05 / share
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5.3 5.3 5.4 4.2 4.1 4.1 2.1 2.4 2.0 1.0 1.0 1.0 1.2 1.2 1.2 0.4 0.4 0.4 14.2 14.4 14.1 Sep-24 Jun-25 Sep-25 ($ billions) LOANS DECREASED $222.5 MM, OR 1.6% (343) (8) (3) 3 9 17 102 Consumer Total Loans and Leases 9/30/25 vs 6/30/25 Net Changes ($ millions) (0.3%) Note: Segments may not sum to total due to rounding CRE (0.2%) C&ICRE & Construction Residential Home Equity Construction (0.8%) Residential C&I Consumer Home Equity Leasing (4.1%) 4 Leases (0.3%) (2.3%) (14.5%) Q3 Highlights • Decline in C&I loans driven by: • $146 mm decline in dealer flooring balances • $130 mm in paydowns on existing corporate lines by several Hawaii companies
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10.19.4 1.3 Retail Commercial Public TOTAL DEPOSITS INCREASED $498 MM TOTAL COST OF DEPOSITS DOWN 1 BP 6.8 6.8 6.8 5.9 6.2 6.7 4.1 3.8 3.9 3.4 3.4 3.4 20.2 20.2 20.7 Sep-24 Jun-25 Sep-25 ($ billions) Total Deposits Deposit Composition ($ billions) Note: Segments may not sum to total due to rounding Quarterly Cost of Deposits 171 bps 139 bps 138 bps Q3 Highlights • $498 mm, or 2.5%, increase in total deposits o $92 mm increase in retail and commercial deposits o $ 43 mm decrease in retail deposits o $ 135 mm increase in commercial deposits o $406 mm increase in total public deposits due to increases in operating account balances • 138 bp cost of deposits, down 1 bp • 33% noninterest bearing / total deposit ratio Time Money Market Savings Demand 5
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156.7 163.6 169.3 2.95% 3.11% 3.19% 1.00%1.10%1.20%1.30%1.40%1.50%1.60%1.70%1.80%1.90%2.00%2.10%2.20%2.30%2.40%2.50%2.60%2.70%2.80%2.90%3.00%3.10%3.20%3.30%3.40%3.50%3.60%3.70%3.80%3.90%4.00%4.10%4.20%4.30%4.40%4.50%4.60%4.70%4.80%4.90%5.00% 0.05.010.015.020.025.030.035.040.045.050.055.060.065.070.075.080.085.090.095.0100.0105.0110.0115.0120.0125.0130.0135.0140.0145.0150.0155.0160.0165.0170.0175.0180.0185.0190.0195.0200.0205.0210.0 Q3 24 Q2 25 Q3 25 $5.7 MM INCREASE IN NET INT INCOME 8 BP INCREASE IN NIM ($ millions) Net Interest Income and Net Interest Margin Q3 Highlights • Net interest margin increased 8 bps in Q3 o NIM improvement driven by fixed asset repricing and non-recurring items such as loan fees • 1.41% total cost of funds, down 1 bps 3.11% 0.03% 0.01% 0.01% 0.03% 3.19% Q2 2025 Loan Repricing Mix Deposit Repricing Other Q3 2025 Q2 ‘25 – Q3 ‘25 NIM Walk 6
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126.1 124.9 125.7 59.8% 57.2% 55.3% Q3 24 Q2 25 Q3 25 53.3 54.0 57.1 Q3 24 Q2 25 Q3 25 NONINTEREST INCOME AND EXPENSE 7 ($ millions) Noninterest Income Noninterest Expense Nonint Expense Efficiency Ratio ($ millions) • BOLI income included $1.3 mm benefit from favorable market movements • “Other income” included $1.2 mm of swap fees
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ASSET QUALITY REMAINS STRONG 8 ▪ 30-89 days past due is comprised of accruing and non-accruing loans▪ TLL - Total Loans and Leases ▪ QTD NCO Rate - Annualized QTD NCO/Avg Loans and Leases ▪ Includes OREO and 90+ days past due accruing loans ($ millions) ($ millions) ($ millions)($ millions)
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ALLOWANCE FOR CREDIT LOSS RESERVE LEVELS CONTINUE TO PROVIDE FOR UNCERTAINTY 9 Rollforward of the On-Balance Sheet Allowance for Credit Losses • The Asset ACL / Total Loans and Leases is at 1.17%, unchanged from Q2 • Approximately $170 mm outstanding balances to NDFI’s at 9/30/25 • Exposure is predominantly to REITS • No exposure to private credit or private equity ($ in 000’s) C&I CRE Const Lease Mortgage Home Equity Consumer Total 6/30/2025 20,061 39,264 8,945 2,343 37,965 11,190 48,057 167,825 Charge-offs -1,106 - - -580 - - -4,719 -6,405 Recoveries 410 - - - 14 26 1,749 2,199 Provision -281 -424 -557 752 -248 168 2,240 1,650 9/30/2025 19,084 38,840 8,388 2,515 37,731 11,384 47,327 165,269 % of Total ACL 11.5% 23.5% 5.1% 1.6% 22.8% 6.9% 28.6% 100.0% Total Loan Balance 2,027,504 4,513,706 881,462 444,280 4,077,946 1,170,822 1,013,663 14,129,383 ACL/Total LL 0.94% 0.86% 0.95% 0.57% 0.93% 0.97% 4.67% 1.17%
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10 QUESTIONS
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APPENDIX 11
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COMMERCIAL REAL ESTATE 12 (As of 09/30/25) CRE exposure increased $102.1MM from Q2 2025 with the larger increases in Office and Multi-family. The portfolio continues to be well diversified across property types, well secured with a weighted average LTV of 58.2%. Criticized rate increased to 4.5%. • Office exposure in CRE represents approximately 5.4% of total loans and leases, with criticized office CRE at 12 bps of total loans and leases. • The CRE portfolio continues to perform well, reflecting the quality of sponsorship and underlying collateral. • The Bank continues to monitor the CRE book closely, focusing attention on investor real estate, construction/development and office. Property Type Balances ($ mm) % of Balances Weighted Average LTV % Criticized Office 767 17.0% 59.4% 2.2% Hotel 483 10.7% 52.8% 7.2% Retail 873 19.3% 60.4% 2.3% Multi-family 913 20.2% 55.9% 10.9% Industrial 645 14.3% 58.7% 4.6% Dealer Related 454 10.1% 65.1% 0.5% Other 379 8.4% 54.4% 0.6% Total 4,514 100.0% 58.2% 4.5%
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COMMERCIAL & INDUSTRIAL 13 (As of 09/30/25) Industries deemed to exhibit higher volatility represent a modest amount of total C&I exposure and dealer related credits represent about 34.7% of total C&I. Industry Balances ($ mm) % of Balances % Criticized Auto Dealers 703 34.7% 2.0% Retail - 0.0% 0.0% Hospitality/Hotel 89 4.4% 0.0% Food Service 39 1.9% 2.2% Transportation 64 3.2% 0.0% Other 1,133 55.8% 6.7% Total 2,028 100.0% 4.4%
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CONSTRUCTION 14 (As of 09/30/25) The construction book is concentrated in Multi-family and largely centered in rental and for-sale housing. Multi-family criticized rate is 0.0%, unchanged from Q2 2025. Property Type Balances ($ mm) % of Balances Weighted Average LTV % Criticized Office 23 2.6% 46.8% 0.0% Hotel 52 5.9% 48.9% 0.0% Retail 29 3.3% 58.3% 0.0% Multi-family 449 51.0% 54.7% 0.0% Industrial 178 20.2% 54.5% 15.7% Dealer Related 69 7.8% 77.9% 0.0% Other 81 9.2% 58.9% 1.3% Total 881 100.0% 56.4% 3.3%
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SUMMARY INCOME STATEMENT Quarter ended ($ in millions except per share data) 9/30/25 6/30/25 9/30/24 Net interest income $ 169.3 $ 163.6 $ 156.7 Provision for credit losses 4.5 4.5 7.4 Noninterest income 57.1 54.0 53.3 Noninterest expense 125.7 124.9 126.1 Pre-tax income 96.1 88.1 76.4 Tax expense 22.3 14.9 15.0 Net Income $ 73.8 $ 73.2 $ 61.5 Diluted earnings per share $ 0.59 $ 0.58 $ 0.48 15 Note: Totals may not sum due to rounding.
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SELECTED BALANCE SHEET ITEMS ($ in millions except per share data) As of 9/30/25 6/30/25 9/30/24 Selected Assets Investment securities – AFS $ 1,986.7 $ 1,891.7 $ 2,056.0 Investment securities – HTM 3,594.2 3,658.8 3,853.7 Loans and leases 14,129.4 14,351.9 14,241.4 Total assets 24,098.7 23,837.1 23,780.3 Selected Liabilities and Stockholders’ Equity Total deposits $ 20,729.6 $ 20,231.4 $ 20,227.7 Short-term borrowings - 250.0 250.0 Total stockholders’ equity 2,733.9 2,694.5 2,648.0 Shares Outstanding 123,719,585 124,683,544 127,886,167 Book value per share $ 22.10 $ 21.61 $ 20.71 Tangible book value per share (1) 14.05 13.63 12.92 Tier 1 Leverage Ratio 9.16 % 9.12 % 9.14 % CET 1 / Tier 1 13.24 % 13.03 % 13.03 % Total Capital Ratio 14.49 % 14.28 % 14.25 % 16(1) Non-GAAP financial measure. A reconciliation to the directly comparable GAAP measure is provided in the appendix of this slide presentation.
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GAAP TO NON-GAAP RECONCILIATIONS Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. 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 capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. The following tables provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. 17
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GAAP TO NON-GAAP RECONCILIATION 18 (1) Annualized for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024 and nine months ended September 30, 2025 and September 30, 2024 (dollars in thousands) Income Statement Data: Net income $ 73,840 $ 73,247 $ 61,492 $ 206,335 $ 177,633 Average total stockholders' equity $ 2,710,273 $ 2,663,850 $ 2,588,806 $ 2,672,284 $ 2,532,911 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,714,781 $ 1,668,358 $ 1,593,314 $ 1,676,792 $ 1,537,419 Average total assets $ 23,993,685 $ 23,859,410 $ 24,046,696 $ 23,914,896 $ 24,064,208 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,998,193 $ 22,863,918 $ 23,051,204 $ 22,919,404 $ 23,068,716 Return on average total stockholders' equity (1) 10.81 % 11.03 % 9.45 % 10.32 % 9.37 % Return on average tangible stockholders' equity (non-GAAP) (1) 17.08 % 17.61 % 15.35 % 16.45 % 15.43 % Return on average total assets (1) 1.22 % 1.23 % 1.02 % 1.15 % 0.99 % Return on average tangible assets (non-GAAP) (1) 1.27 % 1.28 % 1.06 % 1.20 % 1.03 % (dollars in thousands, except per share amounts) Balance Sheet Data: Total stockholders' equity $ 2,733,921 $ 2,694,545 $ 2,617,486 $ 2,648,034 Less: goodwill 995,492 995,492 995,492 995,492 Tangible stockholders' equity $ 1,738,429 $ 1,699,053 $ 1,621,994 $ 1,652,542 Total assets $ 24,098,728 $ 23,837,147 $ 23,828,186 $ 23,780,285 Less: goodwill 995,492 995,492 995,492 995,492 Tangible assets $ 23,103,236 $ 22,841,655 $ 22,832,694 $ 22,784,793 Shares outstanding 123,719,585 124,683,544 126,422,898 127,886,167 Total stockholders' equity to total assets 11.34 % 11.30 % 10.98 % 11.14 % Tangible stockholders' equity to tangible assets (non-GAAP) 7.52 % 7.44 % 7.10 % 7.25 % Book value per share $ 22.10 $ 21.61 $ 20.70 $ 20.71 Tangible book value per share (non-GAAP) $ 14.05 $ 13.63 $ 12.83 $ 12.92 September 30, June 30, December 31, September 30, 2025 2025 2024 2024 As of As of As of As of For the T hree Months E nded For the Nine Months E nded September 30, June 30, September 30, September 30, 2025 2025 2024 2025 2024