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Kish Bancorp, Inc.IT’S A L L CO NN E CTED 2 0 2 1 A N N U A L R E P O R T TA BL E OF C ONTENTS 2 CEO’s Message 7 Financial Highlights 8 COVID-19 Response 9 Digital Transformation 10 Commercial Banking 12 Wholesale Banking 14 Small Business Banking 16 Personal Banking 18 Wealth Management and Private Banking 20 Community and Foundation 22 Consolidated Statements of Income 23 Consolidated Balance Sheets 24 GAAP/Non-GAAP Reconciliation 25 Environmental, Social & Governance Statistics 26 Senior Management Committee 28 Senior Officers Boards of Directors (Inside Back Cover) Shareholder Information (Back Cover) First Hawaiian, Inc. (NASDAQ: FHB) is a bank holding company headquartered in Honolulu, Hawai‘i. Its principal subsidiary, First Hawaiian Bank, was founded in 1858 as Bishop & Co., and today is Hawai‘i’s largest financial institution with assets of $25.0 billion as of December 31, 2021. The bank has branch locations throughout Hawai‘i, Guam and Saipan. The bank offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online, and mobile banking channels. For more information about First Hawaiian, Inc., visit fhb.com. At First Hawaiian, we put connection at the center of everything we do. 1 C E Oʼ S M E S S A G E Strong Earnings, Enhanced Digital Platforms, Optimistic Outlook Dear Fellow Shareholders, When I look back on 2021, it’s amazing how we were able to address the many obstacles we faced in our communities—as friends, colleagues and families, and as an organization— while dealing with the ongoing uncertainty of the COVID-19 pandemic. I am inspired by how our communities showed their resilience, and how our FHB team responded, taking great pride in our customer relationships and serving our customers with excellence as we did whatever it took to cautiously reopen our economy. Through it all, we made exciting progress in our digital transformation strategy. As we saw changes in consumer behavior, our efforts were timely and reaffirmed that the key to our future is digital. We will not lose sight of our 163-year history as a community bank, but will enhance our relationship banking strategies and personal service with the digital touchpoints that are so important to today’s customer. Our dedication to service, paired with our progress in our digital transformation led to solid earnings, excellent credit quality and an active strategy to return capital to shareholders despite the ongoing economic challenges caused by rising COVID-19 cases. Through these efforts, we have the bank well positioned for 2022 with a strong balance sheet and sufficient capital to fund loan growth from the rising interest rates signaled by the Federal Reserve. Reviving Hawai‘i’s Economy Hawai‘i’s unemployment rate improved during 2021, reaching a low of 5.7% in December. Although Hawai‘i tourism has taken a hard hit from the pandemic, demand for travel is high and the state remains a desirable destination. The University of Hawai‘i Economic Research Organization forecasts that tourism will continue its recovery this year throughout the islands, which leaves me optimistic about our future. As a part of our duty to mitigate the impact of public health threats such as COVID-19 on our economy, we have taken steps in our branches and offices that have proven we can operate in person while keeping employees and customers safe. It is our goal that the communities we serve feel a deeper connection with First Hawaiian. Robert S. Harrison Chairman, President and CEO 2 3 We understand that vaccination is a critical component to reducing the spread and severity of COVID-19, and FHB was one of the first large local companies in Hawai‘i to require our employees to be vaccinated or tested weekly. Our employees stepped up, and by year end our workforce was 95% fully vaccinated and more than 56% of those eligible have received booster doses. In addition to public health efforts, we helped our customers create a safety net so they can get back on track and minimize the effects of COVID-19 on their finances. We continue to assist both our small business customers and their employees by guiding their participation in the federal Paycheck Protection Program (PPP). We originated over 10,000 PPP loans for $1.4 billion to date and have already helped over 90% obtain loan forgiveness. On a broader level, First Hawaiian’s corporate philanthropy emphasized aid to organizations that help people struggling to recover from the pandemic. First Hawaiian Bank Foundation and our employees donated $5.7 million to non-profits that help those in our community still being impacted by the pandemic. Our company made more cash and in-kind donations than any other organization on the 2021 “Most Charitable Hawaii Companies” list compiled by Hawaii Business magazine. I’m especially proud that 98% of our team contributed to the employee-run Kōkua Mai fundraising campaign. Employees and retirees raised $910,225 for 36 charities in Hawai‘i, Guam, and Saipan. Relationship Banking Reimagined At FHB, digital is about empowering our customers with the information they need in the channels they prefer. Whether it’s a simple mobile deposit, or utilizing best-in- class digital tools to fill their needs for mortgage loans, credit cards, budget management, or paying bills at the click of the button, First Hawaiian’s combination of tailored digital and in-person service positions us well for how our customers prefer to bank. In 2021, we launched the new fhb.com, our new mobile app, new features on our residential lending platform, new dynamic loan applications and we made major headway on our core conversion. I’m excited to report that our customers have responded positively to the progress we’ve made with these important initiatives. With the improved user experience in our digital channels, our data shows that customer engagement has increased as they integrate their in-branch transactions with the power of our digital platforms. Our core conversion is a foundational element and the next phase of our digital transformation strategy. When we embarked on this project, it was to advance our ability to develop the types of digital products and services that are driving the transformation taking place in the banking industry today. It is the key to automating processes and broadening our abilities to provide a personalized, seamless customer experience between our digital channels and our branches. With our transformation, we’ll be upgrading over 40 platforms and applications, many of which are the systems we rely on every day to operate the bank and service our customers. We made tremendous progress on our core project in 2021, and we’re excited about completing our conversion in May of 2022. We recognize that with the speed of digital adoption, customers will continue to engage with us differently. Still, our business is about building relationships, gathering deposits, making loans, and providing complimentary financial services. Our platforms will support these areas, ensuring we’re well positioned to grow for years to come. Mahalo, Aloha and A Hui Hou Leading a successful bank requires a team of collaborative and caring individuals, from the Board of Directors to our customer-facing employees. I rely on their expertise and feedback to guide our direction and decision-making process as we navigate a new normal for our state. I’m pleased to welcome two new members to our Boards of Directors: James S. Moffatt, former Chairman and CEO of Deloitte Consulting, and Kelly A. Thompson, former Senior Vice President, Chief Operating Officer of samsclub.com. Their experience and expertise will help us as we continue with our digital transformation efforts. I also want to extend a warm mahalo to Jenai S. Wall, Foodland Chairman and CEO, and Matthew J. Cox, Chairman and CEO of Matson, Inc., who both announced that they will not stand for re-election as directors on our boards. Their extensive leadership experience in business and community affairs has made them a source of wise counsel and I can’t thank them enough for their years of service and commitment to our community. With an eye toward our digital future, we strengthened our senior leadership with the appointment of Christopher L. Dods to Vice Chairman and Chief Operating Officer of our bank and holding company. During his 15-year career with First Hawaiian, Chris has led significant initiatives in digital banking, card services, and marketing. O U R B R A N D I N G R E F R E S H It’s all connected. As residents in the islands know, we are intricately connected. There is the ocean, which flows between our shores and brings us together. There is culture, which defines our daily experiences and connects us through everything from food to story. And there is community, the invisible thread between everything we do. Talk story for a minute and we find that someone’s auntie is another’s co-worker, someone’s neighbor is another’s regular customer. For 163 years, First Hawaiian Bank has been a community bank. Community is what motivated the creation of our institution, and it continues to drive us today. As we reflected on our brand refresh in 2021, we realized that connection is at the center of everything we do. This purpose is reflected in our digital transformation, which empowers our customers with information when they need it, where they need it. Whether they use the Quick Quote mortgage feature on fhb.com for estimated rates and closing costs while at an open house or manage a personalized budget with MoneyMap on our mobile app, our digital products and services are meant to amplify connections. Our customers also demonstrate the power of connection. Take Shane Mizusawa of 535 Plumbing, whose business has grown from one to 34 employees in just a few years thanks to his tireless work ethic and dedication to family values—and who grew up with First Hawaiian Hawai‘i Kai branch manager Nohonani Leslie, who is now his banker. Customers such as Shane and 535 Plumbing received Payroll Protection Program loans through FHB, relying on the support of their As we reflected on our brand refresh in 2021, we realized that connection is at the center of everything we do. banker while using our online PPP platform. In 2021, the First Hawaiian Bank Foundation also supported Diamond Head Theatre and other local organizations who keep us inspired and connected in good and trying times. Banking with FHB takes many shapes and forms, from managing financial wealth with our private banking team to using the new mobile app to get a comprehensive overview of all financial assets in one place. Our customer relationships also take many different shapes and sizes. And as our customers grow, they too help our community thrive. Together, we accelerate Hawai‘i’s connections, and it all starts with yes. 4 5 I also want to congratulate and thank former Vice Chairman of the Retail Banking Group Mitchell Nishimoto, who retired after a prestigious 35- year career at First Hawaiian. With his retirement, Executive Vice President Neill Char has expanded his role to lead both the Retail Banking and Commercial Banking Groups. On behalf of the bank, I wish each of these leaders the best of luck as they embark on these new chapters and thank them for their dedication and commitment to serving our customers, employees, and community. Sadly, during 2021 we lost two community giants who played major roles in creating today’s First Hawaiian. James C. Wo, who served 19 years on the First Hawaiian Bank board, passed away at the age of 95. He and his brothers led their family’s century-old C.S. Wo & Sons furniture firm. Jim also was a philanthropist who supported many education causes. Former Vice Chairman Anthony Guerrero, who retired after 42 years with First Hawaiian Bank, passed away at 76. Tony’s energy, passion, and humor were contagious. He taught us the importance of the Hawaiian word “kīnā‘ole,” doing the right thing, in the right way, at the right time. It’s a good axiom for us all. Thank you for continuing to put your trust in a bank that has put the needs of the people of Hawai‘i first for 163 years. We head into 2022 with a positive outlook for our company, customers, and the communities we serve. Our employees continue to help thousands of businesses and families stabilize their finances, manage the pandemic’s economic side effects, and recover quickly. Aloha, ROBERT S. HARRISON Chairman, President & Chief Executive Officer 6 BY THE NUMBERS N E T I N C O M E G R E W T O $265.7 million up 43.1% from 2020 T O T A L A S S E T S W E R E up 10.3% to $25 billion L O A N S A N D L E A S E S T O T A L E D $13.0 billion, down 2.4% due to the impact of federal Paycheck Protection Plan (PPP) loans. We saw broad-based strength in residential mortgages, home equity, credit card, and commercial real estate lending. Deposits rose 13.5% to $21.8 billion. The planned runoff of public deposits was more than matched by growth in consumer and commercial deposits. Because our credit quality We continue to be rated remains excellent, “well-capitalized.” Total First Hawaiian was able to stockholders’ equity was release $39 million from $2.7 billion at December our loan-loss reserves 31, 2021. Our commitment during 2021, reversing loss provisions we had made early in the pandemic. We still remain well reserved. to returning capital to shareholders is undiminished. The board maintained the quarterly First Hawaiian’s Allowance dividend through 2021; the for Credit Losses was $157.3 company repurchased $75 million, or 1.21% of total million of common stock loans and leases at year during the year. end; nonperforming assets totaled just 0.06% of total loans and leases. FINANCIAL HIGHLIGHTS F I R S T H A W A I I A N , I N C . (dollars in thousands, except per share amounts) ) N E T I N C O M E (I N M I LLI ON S) 2021 Net Income: $265.7 million 5-Year Compound Annual Growth Rate: 2.9% $300 $250 $200 $150 $100 $50 . 4 4 8 2 $ . 4 4 6 2 $ . 7 5 6 2 $ . 8 5 8 1 $ . 2 0 3 2 $ . 7 3 8 1 $ 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 A S S E T S ( I N BI L LI ONS ) Total Assets (12/31/21): $25.0 billion 5-Year Compound Annual Growth Rate: 4.9% $26 $24 $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 . 0 5 2 $ . 7 2 2 $ . 5 0 2 $ . 7 0 2 $ . 2 0 2 $ . 7 9 1 $ 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 D E P O S I T S ( I N BI L LI ONS ) Total Deposits (12/31/21): $21.8 billion 5-Year Compound Annual Growth Rate: 5.4% $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 . 8 1 2 $ . 2 9 1 $ . 8 6 1 $ . 6 7 1 $ . 2 7 1 $ . 4 6 1 $ 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 (1) These amounts are Non-GAAP financial measures. See GAAP/Non-GAAP Reconciliation on page 24 of this Annual Report for reconciliations of core net income, core basic earnings per share and core diluted earnings per share to comparable GAAP measures. (2) These ratios are Non-GAAP financial measures. For an explanation of how these ratios are computed, as well as a reconciliation of the components of such ratios to comparable GAAP measures, see GAAP/Non-GAAP Reconciliation on page 24 of this Annual Report, including Notes (1) through (6) in that section. 7 Year Ended December 31,20212020INCOME STATEMENT DATAInterest income$ 549,311 $ 582,759Interest expense18,75247,025Net interest income530,559535,734Provision for credit losses(39,000121,718Net interest income after provision for credit losses569,559414,016Noninterest income184,916197,380Noninterest expense405,479367,672Income before provision for income taxes348,996243,724Provision for income taxes83,26157,970Net income$ 265,735 $ 185,754Core adjustments (Non-GAAP)(1)13,4943,624Core net income (Non-GAAP)(1)$ 279,229 $ 189,378Core basic earnings per share (Non-GAAP)(1)$ 2.17 $ 1.46Core diluted earnings per share (Non-GAAP)(1)$ 2.16 $ 1.45Basic weighted-average outstanding shares128,963,131129,890,225Diluted weighted-average outstanding shares129,537,922130,220,077OTHER FINANCIAL INFO / PERFORMANCE RATIOSNet interest margin2.43%2.77%Core net interest margin (Non-GAAP)(2)2.43%2.77%Efficiency ratio56.45%50.10%Core efficiency ratio (Non-GAAP)(2)54.30%49.77%Return on average total assets1.09%0.85%Core return on average total assets (Non-GAAP)(2)1.14%0.87%Return on average total stockholders’ equity9.81%6.88%Core return on average total stockholders’ equity (Non-GAAP)(2)10.31%7.02%BALANCE SHEET DATALoans and leases$12,962,537 $ 13,290,676Allowance for credit losses157,262208,454lnterest-bearing deposits in other banks1,011,753737,571Investment securities8,428,0326,071,415Goodwill995,492995,492Total assets24,992,41022,662,831Total deposits21,816,14619,227,723Total liabilities22,335,49819,918,727Total stockholders’ equity2,656,9122,744,104Book value per share20.8421.12ASSET QUALITY RATIOSNon-performing loans and leases / total loans and leases0.06%0.07%Allowance for credit losses / total loans and leases1.21%1.57%Net charge-offs / average total loans and leases0.10%0.23%CAPITAL RATIOSCommon Equity Tier 1 capital ratio12.24%12.47%Tier 1 capital ratio12.24%12.47%Total capital ratio13.49%13.73%Tier 1 leverage ratio7.24%8.00%Total stockholders’ equity to total assets10.63%12.11%Tangible stockholders’ equity to tangible assets (Non-GAAP)(2) 6.92%8.07% As we continued to reopen branches in 2021, we followed our standardized approach to creating a safe banking environment for our customers and staff. With the introduction of vaccines, we also implemented a policy requiring employees to be vaccinated or submit to weekly COVID-19 testing, to continue to ensure the healthiest possible environment for our customers. Our employees responded, with 95% becoming fully vaccinated. In terms of supporting local businesses, FHB was second in the state in Payroll Protection Program (PPP) applications, and was first in the state in loan value issued through the program. PPP saw its third round of loans in 2021, and First Hawaiian Bank again helped its local business customers apply for and receive funds. The bank demonstrated a strong track record for helping local businesses get those loans forgiven and continued to use its proven dedicated forgiveness portal for this purpose. To date, the federal government has forgiven an extraordinarily large amount— more than 90%—of the loans received through FHB. We have all learned, as we have responded to the pandemic, that things can change overnight. But as always, First Hawaiian Bank will continue to be a source of stability and optimism for our customers as we help shape a path forward in the communities we serve. Persevering through a Pandemic When the COVID-19 pandemic began, no one expected that it would last well into the following year. In 2021, First Hawaiian continued to offer support in an unprecedented time, helping its customers recover from the most significant financial impacts of the pandemic. Along with our efforts to ensure necessary health and safety measures, the bank went above and beyond to continue to support local businesses through the Payroll Protection Program and increased our emphasis on helping the communities we serve get back on track financially. Digital Transformation A PERSONAL TOUCH In 2021, First Hawaiian Bank made great strides in its digital transformation, which extends our relationship banking strategy by seamlessly integrating our digital and in-person experiences. From the launch of our dynamic website and mobile app to the rollout of our Quick Quote feature on our mortgage platform, each element of the transformation is meant to provide greater convenience and more personalized service to our new and existing customers. A Dynamic Experience Mobile Banking We relaunched our website, fhb.com, on a data-driven platform that allows us to provide dynamic content to our visitors. Content is customized based on user behavior, enhancing the customer experience and providing a more efficient online journey. It is now easier than ever for visitors to get the information they need to find and apply for the products or services they want. With the launch of the new site, FHB has seen an increase of 26.47% in site visits, a 52.15% reduction in bounce rate, and an increase of 18.5% in online applications. FHB RESIDENTIAL LENDING PLATFORM’S Quick Quote Mortgage Feature In real estate, 2021 was a bustling year. First Hawaiian Bank was ready to serve its customers with a best-in-class residential lending platform that is seamlessly supported by our local team who understands the Hawai‘i real estate market better than any national provider. In 2021, FHB further enhanced the platform with the new “Quick Quote” feature, which helps customers understand what they can afford, with immediate access to available mortgage rates, estimated closing costs and monthly payments, empowering them with information that gives them confidence in what they can afford. First Hawaiian Bank greatly expanded its mobile banking services in 2021 with the rollout of its new mobile app, which exceeds industry standards for check deposits and account overviews. Customers can aggregate FHB and non-FHB accounts on the app, enabling them to manage and get a complete view into their finances on a single platform. The app also unlocks the power of MoneyMap, a personal financial management tool that allows customers to set customized budgets and provides spending overviews based on how they manage their money. Further, the Insights feature— which is exclusive to the mobile app and provides daily updates on your accounts—alerts users if there is something it thinks needs to be addressed or reviewed, such as a loan payment due or duplicate charge. Core Conversion In 2021, FHB continued to make progress with its core conversion, which centralizes FHB’s customer account information and automates many internal processes, which will allow for a faster and more seamless customer experience. When this conversion is completed, FHB will continue to improve its customer experience with more dynamic online applications and real-time, personalized information on its mobile app and online banking platforms. This major undertaking enables the bank to work more efficiently, but more importantly, it helps us better serve our customers. 8 9 C O M M E R C I A L B A N K I N G A partnership for life Mike Irish’s mentor Richard Kimi of Hotel Hukilau had advised him to find a banker he could trust when he started doing business. So when he invested his last $25,000 in Parks Brand in 1984, Mike headed down Liliha Street to First Hawaiian Bank. There, he met Glenn Goya. “I said, ‘Glenn, would you like to be my banker?’” Mike recalls. “He looked at me kind of shocked and I just stuck my hand out and shook his hand.” Mike was soon spending his days making, bottling, and delivering sauces. But while he had bought Parks Brand because he wanted a cashflow business, he was losing money. Then, Goya gave Irish a $15,000 loan to buy Halm’s Kim Chee. Together the two companies became profitable, and Mike saw the benefit of synergizing the production of food products. Today, he owns five sauce companies, nine kimchi companies, Diamond Head Seafood, and Keoki’s Lau Lau and Kalua Pig. In the meantime, First Hawaiian enabled Mike to get into real estate, his first passion. This kicked off in 1999, when FHB helped Mike purchase the real estate for the factory where the laulau, seafood, kimchi and sauces are produced. Irish’s personal relationship with First Hawaiian Bank has also grown, from Christmas parties to golfing on Sundays with now-retired Vice Chairman and Chief Banking Officer Ray Ono. Mike knows he can turn to First Hawaiian Bank for help with anything—whether it’s buying a bigger warehouse or just cashing a check. “I’ve never thought of banking as a bank,” he says. “I’ve always thought of it as relationships. I tell people the reason we’re successful is because of the help First Hawaiian gave us and the fact that they believed in me.” Mike Irish CEO, Halm’s Enterprises 10 11 W H O L E S A L E B A N K I N G Connected by culture Andrew Cherng feels that Hawai‘i suits him, as does First Hawaiian Bank. “Culturally, we’re from the same cloth, so it just feels right,” says the Co-Founder and Co-CEO of Panda Restaurant Group. “We share a lot of similar values—family, respect, diligence, perseverance, work hard, do well, and do good for others.” In 1983, Andrew was invited to open a quick-service version of his restaurant, Panda Inn, at a mall in Southern California. By that time, Andrew regularly frequented Hawai‘i with family. As Andrew and his wife and co-Founder, Peggy, were figuring out the model for Panda Express, they visited O‘ahu, and Andrew found inspiration at Patti’s Chinese Kitchen at Ala Moana Shopping Center. “They had a line on both sides going in, and lots of food that was really inexpensive,” he remembers. “I sat there for like two or three days just watching the traffic and what they did, taking it all in.” Today in Hawai‘i and Guam, Panda Restaurant Group has around 50 Panda Expresses and the licensing rights to Raising Cane’s. First Hawaiian Bank is the exclusive bank for all these Panda Express locations. FHB also supports the Cherng Family Trust (CFT) in its real estate ventures in the islands and beyond. The Cherngs’ relationship with FHB grew from their relationship with Dan Nishikawa, whom they first encountered in the local luxury development scene. “Dan is very instrumental in terms of getting us to a closer relationship—providing us with credit lines and competitive pricing,” says Andrew. “He goes out of his way to take care of us.” A new real estate venture Andrew is excited about is the Pacific Business News building in Waikīkī, which CFT is converting to a hotel. “We’ll talk about financing needs with FHB,” Andrew says. “Plus Dan is very experienced with development, so I’m sure we’ll get plenty of advice, too.” Co-Founders and Co-CEOs Andrew and Peggy Cherng of Panda Express, with Regional Director of Operations John Zhang 12 13 S M A L L B U S I N E S S B A N K I N G Treating everyone like family It was after Shane Mizusawa of 535 Plumbing took time off to be with his daughter, who was born with complications, that he found the drive to start his own company. “People were still calling and saying, ‘Can you fix my problem?’” Shane remembers. “I felt like I had to help them.” He established 535 Plumbing in 2015 after realizing those calls were a full-time job. Soon, ensuring he could help everyone who called also meant hiring an employee. Now, 535 Plumbing has a staff of 34. “It’s a close-knit group,” he says. “I feel like all of our managers, they lead with empathy, humility, and concern. I feel like I’m super lucky that I have managers that lead with that.” First Hawaiian Bank was Shane’s choice of bank for his company from the beginning. Having grown up with banker Nohonani Leslie and having watched her rise to branch manager at Hawai‘i Kai, Shane reached out to her for help with 535. “Noho was kind enough to introduce me to private banking and commercial lenders so I got to pick their brains,” he says. Nohonani started by helping Shane get auto loans and a line of credit, and in 2020, she also helped Shane receive a PPP loan. “She was there during the pandemic when I didn’t know what was going on or if we were going to stay open,” Shane says. His partnership with Nohonani and First Hawaiian Bank has extended to Urgent Island Restoration, a restoration company Shane co-founded in 2016. Shane has plans for additional divisions within 535 Plumbing and is pursuing a commercial property for a plumbing distribution store. “Now I understand borrowing money,” he says, “and I feel like we have the capacity to make these leaps, to take these risks.” Shane Mizusawa Owner, 535 Plumbing LLC 14 15 Dr. Lisa Shitamoto with husband Kanoa, daughter Margot and son Fitzgerald in her new dentistry office P E R S O N A L B A N K I N G A practice of caring Growing up, Dr. Lisa Shitamoto tagged along with her mom to First Hawaiian Bank to make deposits and went to work with her dad, a pathologist at Maui Memorial Medical Center. Inspired by him, Lisa wanted to go into healthcare. She also wanted to serve the Maui community. When she figured out being a dentist was how she would do so, her father took out a First Hawaiian loan so she could attend school. When Lisa returned to Maui after graduating, she kept her personal banking at First Hawaiian. “My parents are longtime FHB people,” she says, “so it was only natural for me to follow in their footsteps.” Lisa first worked for a dental practice, but she soon decided she wanted to serve the community in her own way. This meant buying the practice of a retiring dentist in Wailuku. To do so, she went to First Hawaiian for a loan, which is how she met banker Royle Taogoshi. “He’s been with me every step of the way,” she says. Most recently, Royle has helped Lisa with loans to expand her practice to a location she’ll own, with more dental chairs and new technology to enhance her service and practice. When Lisa was buying Maui Mino‘aka Dentistry, she didn’t know she was pregnant, or that her son would need heart surgery. Following that was the pandemic and the arrival of her daughter. Throughout, she’s continued to strive to help the community through her dental work, with the support of her family and First Hawaiian. “I’m grateful for the trust and relationship we’ve built together,” she says of Royle. “I’m very appreciative that he trusted in me, who I am as a person, and my goals and vision for my career.” 16 17 W E A L T H M A N A G E M E N T A N D P R I V A T E B A N K I N G A matter of trust One day, Diane Ono got a call from First Hawaiian Bank’s Jeff Sakamoto, who wanted to learn about the law firm she managed. After catching up with Jeff, whom the firm had previously worked with, and lunch with Neill Char, who was the University Branch manager at that time, Diane and her firm decided to move all 100 or so of the firm’s accounts to First Hawaiian. “You need a good relationship with a bank to have a credit line you can depend on,” Diane says. About seven years ago, when Diane needed help with wealth management, she again chose First Hawaiian. She is happy she did. “I don’t want to worry that somebody is doing something wild and crazy with my retirement,” she says. “And I’ve never ever felt that with First Hawaiian.” Now retired from practicing law, Diane continues to find use for her legal background, including on boards of nonprofits such as the Friends of William S. Richardson School of Law and the Hawai‘i State Bar Foundation, of which she is president. When Diane was referred to Lynn Takahashi, a banker in FHB’s Private Banking Division, they already knew each other from being on the board for the Friends of the UH Cancer Research Center. Recently, Diane told her wealth management team that she wanted to donate to charities while she was alive. Jodie Duvall, FHB’s Senior Vice President and Wealth Advisory Division Manager, recommended stock transfers, which would be more financially beneficial for Diane. “I never would have thought about that,” Diane says. To her, this exemplifies how the First Hawaiian team is both practical and low pressure. Diane grew up in a Japanese family that never talked about money, but she is comfortable discussing wealth management with Lynn, Jodie, and Paul Gauci, her new wealth adviser. They’ve covered long-term care insurance, estate planning, diversifying her portfolio, and changes in the law. “We’ve been doing our meetings on Zoom,” she says. “But I said maybe next year we can get together over lunch, because those were always fun.” 19 Diane Ono of Honolulu, with friends at O‘ahu Country Club 18 Deena Dray with artistic director John Rampage and cast on opening night of “Oliver!” C O M M U N I T Y & F O U N D A T I O N Persevering for the people At any given time, Diamond Head Theatre has about 400 volunteers. They perform, collect tickets, sell snacks, tend gardens, and design costumes. “There’s such a wide depth and breadth of opportunity here, and everyone feels a part of the family,” says Deena Dray, the theater’s executive director. There are also about 1,000 children who take part in educational classes every year. For Deena, “music, singing and dancing brings a joy to people that nothing else does.” Her wish is to get everyone through the theater’s door, because after they experience its magic, they will understand. Some of its subscribers have been coming to shows for 30 years, sitting in the same seats and creating their own theatrical neighborhood. While the pandemic presented a unique challenge to the theater, Deena knew it needed to keep offering creative outlets and camaraderie. They debuted drive-in performances on the loading dock and a Pandemic Adapted Performance Series. Essential to keeping the theater running were two PPP loans, which they secured with the help of First Hawaiian Bank. First Hawaiian has also supported the nonprofit’s future in the form of a new theater. Since 2007, the board has been working on this vision, and in 2011, “we finally had to decide whether we were going to try to raise the money,” Deena recalls. The first major gift came from Joan Bellinger, a board member and wife of John Bellinger, former chair and CEO of First Hawaiian Bank. Diamond Head Theatre’s finance committee chose First Hawaiian to invest the campaign funds and be its primary mortgage lender. For Deena, who formerly was a banker at First Hawaiian, it’s a welcome choice. “I love the people at First Hawaiian Bank,” she says. “When you have that kind of familiarity and feeling about an organization, you want to go back to them.” Deena says of the theater, which is expected to be open by January 2023, “It’s going to be state-of-the-art.” Donors can buy seats and put names on the armrests—one couple did so for their dog, who appeared in a “Wizard of Oz” performance; another woman donated in honor of her mother, who used to bring her to shows. “All of this propelled me and the board forward,” says Deena, “continuing the hopes and dreams and 106-year history of our theater.” 20 21 CONSOLIDATED STATEMENTS OF INCOME F I R S T H A W A I I A N , I N C . CONSOLIDATED BALANCE SHEETS F I R S T H A W A I I A N , I N C . Year Ended December 31, 2021 2020 (dollars in thousands) A S S E T S Year Ended December 31, L O A N S A N D L E A S E S (IN BILLIONS) 2021 2020 Total Loans & Leases (12/31/21): $13.0 billion 5-Year Compound Annual Growth Rate: 2.4% $ 444,488 $ 496,523 Cash and due from banks $ 246,716 $ 303,373 (dollars in thousands except per share amounts) I N T E R E S T I N C O M E Loans and lease financing Available-for-sale securities Other Total interest income I N T E R E S T E X P E N S E Deposits Short-term and long-term borrowings Total interest expense Net interest income Provision for credit losses Net interest income after provision for credit losses N O N I N T E R E S T I N C O M E Service charges on deposit accounts Credit and debit card fees Other service charges and fees Trust and investment services income Bank-owned life insurance Investment securities gains (losses), net Other Total noninterest income N O N I N T E R E S T E X P E N S E Salaries and employee benefits Contracted services and professional fees Occupancy Equipment Regulatory assessment and fees Advertising and marketing Card rewards program Other Total noninterest expense Income before provision for income taxes Provision for income taxes Net income Core adjustments (Non-GAAP)(1) Core net income (Non-GAAP)(1) Core basic earnings per share (Non-GAAP)(1) 101,410 3,413 549,311 13,853 4,899 18,752 530,559 (39,000 ) 569,559 27,510 63,580 38,578 34,719 13,185 102 7,242 184,916 81,808 4,428 582,759 35,471 11,554 47,025 535,734 121,718 414,016 28,169 55,451 33,876 35,652 15,754 (114 ) 28,592 197,380 182,384 174,221 63,349 29,348 24,719 8,245 6,108 25,244 66,082 405,479 348,996 83,261 60,546 28,821 20,277 8,659 5,695 22,114 47,339 367,672 243,724 57,970 $ 265,735 $ 185,754 13,494 3,624 $ 279,229 $ 189,378 $ 2.17 $ 1.46 Interest-bearing deposits in other banks Investment securities Loans and leases Less: allowance for credit losses Net loans and leases Premises and equipment, net Other real estate owned and repossessed personal property Accrued interest receivable Bank-owned life insurance Goodwill Mortgage servicing rights Other assets Total assets L I A B I L I T I E S A N D S T O C K H O L D E R S ’ E Q U I T Y Deposits: Interest-bearing Noninterest-bearing Total deposits Long-term borrowings Retirement benefits payable Other liabilities Total liabilities Stockholders’ equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss, net Treasury stock Total stockholders’ equity 1,011,753 8,428,032 12,962,537 157,262 12,805,275 318,448 175 63,158 471,819 995,492 8,302 643,240 737,571 6,071,415 13,290,676 208,454 13,082,222 322,401 — 69,626 466,537 995,492 10,731 603,463 $ 24,992,410 $ 22,662,831 $ 12,422,283 $ 11,705,609 9,393,863 21,816,146 — 134,491 384,861 7,522,114 19,227,723 200,010 143,373 347,621 22,335,498 19,918,727 1,406 2,527,663 604,534 (121,693 ) (354,998 ) 2,656,912 1,402 2,514,014 473,974 31,604 (276,890 ) 2,744,104 $14 $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 . 1 3 1 $ . 2 3 1 $ . 3 3 1 $ . 0 3 1 $ . 3 2 1 $ . 5 1 1 $ 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 D I V E R S I F I E D L O A N & L E A S E P O R T F O L I O As of 12/31/21 10% Consumer 38% Residential Real Estate 16% Commercial 34% Commercial Real Estate Total liabilities and stockholders’ equity $ 24,992,410 $ 22,662,831 Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon. 2% Other Core diluted earnings per share (Non-GAAP)(1) $ 2.16 $ 1.45 Basic weighted-average outstanding shares Diluted weighted-average outstanding shares 128,963,131 129,537,922 129,890,225 130,220,077 Refer to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for the Consolidated Financial Statements, including Report of Independent Registered Public Accounting Firm, thereon. (1) Core net income excludes certain gains, expenses and one-time items. See GAAP/Non-GAAP Reconciliation on page 24 of this Annual Report for reconciliations of core net income, core basic earnings per share and core diluted earnings per share to comparable GAAP measures. 22 23 GAAP/NON-GAAP RECONCILIATION We present net interest income, noninterest income, noninterest expense, net income, earnings per share, and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a Non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these Non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. Non-GAAP measures have limitations as analytical tools and investors should not consider them in isolation or as a substitute for analysis of our financial results or financial condition as reported under GAAP. The following table provides a reconciliation of net interest income, noninterest income, noninterest expense, and net income to their “core” Non-GAAP financial measures: (dollars in thousands except per share data) Net interest income Core net interest income (Non-GAAP) Noninterest income Losses (gains) on sale of securities Costs associated with the sale of stock(a) Core noninterest income (Non-GAAP) Noninterest expense Loss of litigation One-time items(b) Core noninterest expense (Non-GAAP) Net income Losses (gains) on sale of securities Costs associated with the sale of stock(a) Loss of litigation One-time items(b) Tax adjustments(c) Total core adjustments Core net income (Non-GAAP) Basic earnings per share Diluted earnings per share Year Ended December 31, 2021 2020 $ 530,559 $ 535,734 $ 530,559 $ 535,734 $ 184,916 $ 197,380 (102 ) 6,014 114 4,828 $ 190,828 $ 202,322 $ 405,479 $ 367,672 (2,100 ) (10,134 ) — — $ 393,245 $ 367,672 $ 265,735 $ 185,754 (102 ) 6,014 2,100 10,134 (4,652 ) 13,494 114 4,828 — — (1,318 ) 3,624 $ 279,229 $ 189,378 $ 2.06 $ 1.43 $ 2.05 $ 1.43 Core basic earnings per share (Non-GAAP) $ 2.17 $ 1.46 Core diluted earnings per share (Non-GAAP) $ 2.16 $ 1.45 Basic weighted-average outstanding shares Diluted weighted-average outstanding shares 128,963,131 129,890,225 129,537,922 130,220,077 (a) Costs associated with the sale of stock for the year ended December 31, 2021 and 2020 related to changes in the valuation of the funding swap entered into with the buyer of our VISA Class B restricted sales in 2016. (b) One-time items for the year ended December 31, 2021 consisted of fees related to the prepayment of $200.0 million of Federal Home Loan Bank advances and severance costs. (c) Represents the adjustments to net income, tax effected at the Company's effective tax rate for the respective period. Note (1): Core net interest margin is a Non-GAAP financial measure. We compute our core net interest margin as the ratio of core net interest income to average earning assets. For a reconciliation to the most directly comparable GAAP financial measure for core net interest income, see GAAP/Non-GAAP Reconciliation above. Note (2): Core efficiency ratio is a Non-GAAP financial measure. We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income. For a reconciliation to the most directly comparable GAAP financial measure for core noninterest expense, core net interest income and core noninterest income, see GAAP/Non-GAAP Reconciliation above. Note (3): Core return on average total assets is a Non-GAAP financial measure. We compute our core return on average total assets as the ratio of core net income to average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see GAAP/Non-GAAP Reconciliation above. Note (4): Core return on average total stockholders’ equity is a Non-GAAP financial measure. We compute our core return on average total stockholders’ equity as the ratio of core net income to average total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see GAAP/Non-GAAP Reconciliation above. Note (5): Core basic earnings per share and core diluted earnings per share are computed by dividing core net income by the weighted average number of common shares outstanding for the period and, in the case of core diluted earnings per share, assuming conversion of potentially dilutive common stock equivalents. Note (6): Tangible stockholders’ equity to tangible assets is a Non-GAAP financial measure. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets. We compute our tangible stockholders’ equity by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible assets by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. 24 G O V E R N A N C E Values-Based Governance Core Values of Caring, Character and Collaboration 2,063 employees 751 men (36%) 1,312 women (64%) 28% are management positions 56% women officers 44% men officers Of the 2,063 employees, 15% of women are in management roles. 12% men are in management roles AWARD-WINNING TALENT DEVELOPMENT PROGRAM OPEN TO ALL EMPLOYEES 10 Leadership development programs offered to employees 81% of leaders who participated in a leadership development program have been promoted or transferred since the program began Over 90 professional development courses for employees through an Online Learning Center 12.4 years—Employee average years of service with the bank P H I L A N T H R O P Y $5.77 million donations to over 200 charities in the areas of: Education and Financial Literacy Health and Human Services Arts and Culture COVID-19 Relief for food insecurity, social services and mental health E N V I R O N M E N T A L , S O C I A L a n d G O V E R N A N C E S T A T I S T I C S S O C I A L Employees and Retirees raise $910,225 for 36 charities in Hawai‘i, Guam, and Saipan through Kōkua Mai, the bank’s employee giving campaign 98% participation rate in Kōkua Mai $10.4 million donated to charities since Kōkua Mai’s 2007 inception E N V I R O N M E N T A L 50% Bus pass subsidy for all employees Paper recycling in all facilities Photovoltaic use on branch buildings 10.3% Reduced energy use First Hawaiian Center LED lighting retrofit Electric vehicle charging stations 4,500 Energy Star monitors in use 25 S E N I O R M A N A G E M E N T LEFT TO RIGHT: Lance A. Mizumoto Vice Chairman & Chief Lending Officer, Neill A. Char Executive Vice President, Commercial Joel E. Rappoport Executive Vice President, General Counsel & Christopher L. Dods Vice Chairman, Chief Operating Alan H. Arizumi Vice Chairman, Wealth Wholesale Banking Group and Retail Banking Group Secretary, Legal and Corporate Services Group Officer, Digital Banking and Management Group Ralph M. Mesick Vice Chairman, Chief Risk Officer, Risk Robert S. Harrison Chairman, President & Management Group and Interim Chief Chief Executive Officer Financial Officer, Finance Group Gina O.W. Anonuevo Executive Vice President & Chief Compliance Officer, Corporate Compliance Group Marketing Group Iris Y. Matsumoto Executive Vice President, Human Resources Group 27 26 SENIOR OFFICERS Marcia H. Morita Commercial Deposit Department Kevin S. Haseyama Finance Group Joe Morrison Credit Administration Division Jeffrey N.M. Higashi Commercial Banking Group Jody J. Mukaigawa Commercial Banking Group Gregg M. Hirano Card Services Division Sonja P.H. Hirasuna Controller’s Division Candice Y. Naito Commercial Banking Group Lea M. Nakamura Treasury & Investment Division Shigeo Hone Japan Business Development Linda C.L.F. Nakamura RE Fulfillment Center First Hawaiian Bank EXECUTIVE VICE PRESID ENTS Derek A. Baughman Enterprise Technology Management Darlene N. Blakeney Corporate Banking Division Michael A. Coates Enterprise Operations Services Division Conrado Figueroa Western Region Dealer Center Daniel A. Nishikawa Commercial Real Estate Division Kevin T. Sakamoto Consumer Banking Division Brian Uemori Chief Credit Officer Edward G. Untalan Guam & CNMI Region Office SEN IOR VIC E P R ES IDEN TS Joanne H. Arizumi Retail Banking Group James K. Bourgeois Technology Services Division Stephen A. Brock Private Banking Division Martha L. Camacho Pearlridge Banking Center Debbie Ann M. Chan Service Delivery Division Derek A. Chang Corporate Banking Division Paula C.H. Chang Dealer Division Jason K. Dang Digital Banking Division Dean C. Duque Branch Banking Division Shirley M. Durham Enterprise Operations Services Division Jodie M. Duvall Wealth Advisory Division Ross G. Fujii Bank Secrecy Act Division Glenn T. Fukuda Controller’s Division John K. Guerri Personal Trust Division Calvin K. Hangai Chief Accounting Officer Jason H. Haruki Institutional Advisory Services 28 Robert N. Taylor Operational Risk Lisa A. Tomihama Maui Region Office Michael A. Tottori Wealth Advisory Division Mark Troske Emerging Technologies Division Jaylene S.L. Tsukayama Call Center Ryan S. Ushijima Trust Compliance Department Dean Uyeda Credit Administration Division Raenette R. Uyehara Workforce Services Division Jeffrey S. Ventura Residential Real Estate Division William L. Weeshoff Marketing Communications Division Derek M.S. Wong Credit Originations Department Vernon Y.C. Wong Wealth Advisory Division Danielle S.N. Yafuso Branch Properties Department Eric B. Yee Private Banking Division Terence C.Y. Yeh Credit Administration Division Cameron W. Nekota Bank Properties Division and Community Relations Division Michael T. Nishida Enterprise Information Security Department Todd T. Nitta Dealer Division Todd D. Noia Commercial Real Estate Division Glen R. Okazaki Retail Banking Group Sherri-Ann Y. Okinaga Organizational Effectiveness Division Isaac M. Okita Financial Planning & Analysis Division Carol M. Ono Workforce Services Division Eliza E. Young Credit Department Mark F. Oyadomori Wealth Advisory Division Adam P. Palmer Cybersecurity Division Bard E. Peterson Commercial Banking Group Raymond W. Phillips Investment Services Department David K. Rair Legal & Corporate Services Division Group Alethea A. Seto Sales, Service & Retail Training Division Russell O. Shogren Jr. Branch Real Estate Division First Hawaiian Leasing, Inc. Robert S. Harrison Chairman Lance A. Mizumoto Chief Executive Officer Darlene N. Blakeney President Bishop Street Capital Management Corporation Kenneth L. Miller Chairman, Chief Executive Officer, President, Chief Investment Officer and Director of Equity David A. Honma Hawai‘i Region Office Alyssa S.N. Hostelley Business Services Division Laurae U. Imamura EOS – Commercial Loan Center Stephen E.K. Kaaa Waikīkī Banking Center Leland K. Kahawai Kaua‘i Region Office Courtney S. Kajikawa Personal Trust Division James S. Kaneshiro Enterprise Operations Services Division Robin Kaneshiro Credit Administration Division Mark D. Kobayashi Core Platform Conversion Carole Lau Commercial Real Estate Division Kent R. Lau Commercial Banking Group Malcolm Lau Retail Planning Division James W. Lawhn Personal Trust Division Michael P. Lawrence Gallagher Data Services Center Macy Ann U. Lee Business Services Division Tricia K.F. Lee Corporate Compliance Division Kristi N. Lefforge General Auditor George C.K. Leong, Jr. Commercial Real Estate Division Raoul R. Magana Card Services Division Gregory J. Sitar Main Banking Center Susan A. Strong Omni Channel Center Kenneth L. Miller Institutional Advisory Services Wayne K. Suehiro Commercial Banking Group Shari Ann K.S. Minato Service Delivery Division Laura K. Morikuni Workforce Services Division Lynn M. Takahashi Private Banking Division Mark S. Taylor Core Platform Conversion Michael G. Taylor Wealth Advisory Division Ryan S. Ushijima Senior Vice President and Chief Compliance Officer First Hawaiian Bank Foundation Robert S. Harrison Chairman Walter A. Dods, Jr. Chairman Emeritus Cameron W. Nekota President K A U A ‘ I ( 5 ) Lihu‘e O ‘ A H U ( 2 7 ) Kailua Honolulu W N S E M A U I ( 6 ) Lāna‘i City Wailuku L Ā N A ‘ I ( 1 ) G U A M ( 3 ) Hagatna T H E 6 2 B R A N C H E S o f T H E 5 1 B R A N C H E S o f F I R S T H A W A I I A N B A N K F I R S T H A W A I I A N B A N K Kailua-Kona H A W A I ‘ I ( 7 ) S A I P A N ( 2 ) Hilo BOARDS O F DIRECTORS First Hawaiian, Inc. Board of Directors First Hawaiian Bank Board of Directors Robin K. Campaniano President and Chief Executive Officer (Retired), AIG Hawaii Insurance Company Matthew J. Cox Chairman and Chief Executive Officer, Matson, Inc. Leighton S.L. Mau President and Chief Operating Officer, Waikiki Business Plaza, Inc. James S. Moffatt Vice Chairman and Global CEO (Retired), Deloitte Consulting W. Allen Doane Chairman and Chief Executive Officer (Retired), Alexander & Baldwin, Inc. Mark K. Teruya President FreshPoint Hawaii, LLC Michael K. Fujimoto Executive Chairman, HPM Building Supply Robert S. Harrison Chairman, President, and Chief Executive Officer, First Hawaiian Bank Robert P. Hiam President and Chief Executive Officer (Retired), Hawaii Medical Service Association Donald G. Horner Partner, Malu Investments Faye W. Kurren President and Chief Executive Officer (Retired), Hawaii Dental Service FSC MEMBER FDIC Kelly A. Thompson Senior Vice President and Chief Operating Officer (Retired), Walmart eCommerce Allen B. Uyeda Chief Executive Officer (Retired), First Insurance Company of Hawaii, Ltd. Jenai S. Wall Chairman and Chief Executive Officer, Foodland Super Market, Ltd. Vanessa L. Washington Senior Executive Vice President, General Counsel and Secretary (Retired) Bank of the West C. Scott Wo Owner/Executive Team, C. S. Wo & Sons, Ltd. Albert M. Yamada Vice Chairman, Chief Financial Officer, Chief Administrative Officer and Secretary (Retired), First Hawaiian Bank Directors who retired in 2021: Walter A. Dods, Jr. and Bert T. Kobayashi, Jr. First Hawaiian’s Vision Empowering our employees, customers and communities to help them prosper. Our Mission Bringing together our people, culture and technology to deliver personalized financial solutions to meet our customers’ needs. Our Core Values We live by our values of Caring, Character and Collaboration with a growth mindset to perform well and improve every day. C ARIN G We value relationships over transactions. We treat people with dignity and respect. We serve each other, our customers and our community. C H ARAC TE R We act with integrity. We take responsibility for our actions. We are not afraid to take risks and learn from our mistakes. C OLLAB ORAT ION We achieve our best results when we work together. We value others’ viewpoints and draw strength from diversity. We share credit when things go well and accept responsibility when things don’t go well. S H A R E H O L D E R I N F O R M A T I O N CORPORATE HEADQUARTERS First Hawaiian, Inc. 999 Bishop Street, Honolulu, Hawai‘i 96813 TRANSFER AGENT AND REGISTRAR American Stock Transfer & Trust Company, LLC 6201 15th Avenue, Brooklyn, NY 11219 help@astfinancial.com COMMON STOCK LISTING: FHB The common stock of First Hawaiian, Inc. is traded on the Nasdaq Global Select Market under the ticker symbol FHB. INQUIRIES Shareholders with questions about stock transfer services or share holdings may contact American Stock Transfer & Trust Company, LLC, by calling (800) 937-5449, visiting www.astfinancial.com or via email at help@astfinancial.com. Beneficial stockholders with shares held by a broker in the name of a brokerage house should contact their broker. Investor Relations Contact: Kevin Haseyama | (808) 525-6268 | ir@fhb.com Media Contact: Lindsay Chambers | (808) 525-6254 | lchambers@fhb.com CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report 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. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. 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. 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, 2021.
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