3RD QUARTER 2017 EARNINGS CONFERENCE CALL OCTOBER 26, 2017 - PowerPoint PPT Presentation

3RD QUARTER 2017 EARNINGS CONFERENCE CALL OCTOBER 26, 2017

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 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, and any such forward-looking statements are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements can be found in our SEC filings, including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2016, which is available on our website (www.fhb.com) and the SEC’s website (www.sec.gov). Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward- looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. 2

Q3 2017 HIGHLIGHTS • Net income of $58.4 million, or $0.42 per diluted share Solid • Core net income (1) of $57.0 million, or $0.41 per diluted share Earnings • Total assets of $20.6 billion Disciplined • Loan and lease growth of $87 million, or 0.7%, to $12.1 billion Growth, • Deposit growth of $143 million, or 0.8%, to $17.6 billion Strong • Net charge-off ratio: 0.13% annualized Balance Sheet • Capital ratios in excess of well-capitalized ratios at 9/30/17 • Efficiency ratio of 46.0% Strong (1) of 1.21%, core ROATA (1) of 1.18% Financial • ROATA (1) of 14.76%, core ROATCE (1) of 14.42% Performance • ROATCE (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation 3

SUMMARY INCOME STATEMENT Quarter ended 9/30/17 6/30/17 9/30/16 ($ in millions except per share data) Net interest income $ 133.3 $ 131.3 $ 122.7 Provision for loan and lease losses 4.5 4.4 2.1 Noninterest income 48.5 48.9 48.7 Noninterest expense 83.7 85.3 82.8 Pre-tax income 93.7 90.5 86.5 Tax expense 35.3 33.6 33.2 Net Income $ 58.4 $ 56.9 $ 53.2 Core adjustments (1) (2.1) 0.5 3.1 Tax adjustments 0.8 (0.2) (1.1) Core Net Income (1) $ 57.0 $ 57.2 $ 55.2 Diluted earnings per share $ 0.42 $ 0.41 $ 0.38 Core diluted earnings per share (1) 0.41 0.41 0.40 Note: Totals may not foot due to rounding 4 (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation

NET INTEREST INCOME 6 bp linked quarter decline in NIM primarily due to increase in cost of public deposits � 150.0 3.20% 145.0 ($ millions) 140.0 133.3 131.3 131.3 135.0 129.3 130.0 3.10% 122.7 125.0 120.0 115.0 110.0 3.00% 105.0 3.02% 100.0 3.00% 2.99% 95.0 90.0 2.96% 2.90% 85.0 80.0 75.0 2.87% 70.0 65.0 2.80% 60.0 55.0 50.0 45.0 2.70% 40.0 35.0 30.0 25.0 2.60% 20.0 15.0 10.0 5.0 0.0 2.50% Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Net Interest Income Net Interest Margin 5

NONINTEREST INCOME ($ millions) 49.4 49.0 48.9 48.7 48.5 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 6

NONINTEREST EXPENSE Lower salaries and benefits in 3Q 2017 primarily due to equity compensation � forfeitures due to retirements and a change in the estimate of our incentive compensation liabilities 75.0% ($ millions) 85.2 84.3 83.7 82.8 82.5 75.0 48.3% 47.3% 47.2% 46.0% 50.0% 45.8% 50.0 25.0% 25.0 0.0% Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Nonint Expense Efficiency Ratio 7

SELECTED BALANCE SHEET ITEMS 9/30/17 6/30/17 9/30/16 ($ in millions except per share data) Selected Assets Interest bearing deposits in other banks $ 793.0 $ 872.0 $ 804.2 Investment securities 5,315.0 5,126.9 5,363.7 Loans and leases 12,149.7 12,062.4 11,396.6 Total assets 20,565.6 20,374.0 19,892.7 Selected Liabilities and Stockholders’ Equity Total deposits 17,595.5 17,452.3 16,965.5 Total stockholders’ equity 2,581.9 2,552.6 2,524.0 Shares Outstanding 139,586,282 139,546,615 139,530,654 Book value per share $ 18.50 18.29 18.09 Tangible book value per share (1) $ 11.36 11.16 10.95 (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation 8

LOANS Decline in C&I balances largely due to paydowns in dealer flooring lines and SNC loans � ($ billions) ($ billions) Loans and Leases CRE & Construction 3.22 3.10 12.15 3.00 12.06 2.79 2.79 11.78 11.52 11.40 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 C&I Residential & HELOC ($ billions) ($ billions) 4.00 3.33 3.92 3.27 3.86 3.24 3.24 3.19 3.80 3.69 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 9

DEPOSITS Total deposits increased $143 million, or 0.8%, in Q3 2017 � DEPOSIT COMPOSITION TOTAL DEPOSITS ($ billions) 17.6 17.5 17.0 16.9 16.8 Time Demand 26.4% 33.6% Money Market Savings 14.9% 25.1% 9/30/17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 10

ASSET QUALITY NPAs / Total Loans and Leases + OREO NCOs / Ave Loans and Leases 0.09% 0.08% 0.15% 0.07% 0.07% 0.07% 0.13% 0.12% 0.12% 0.11% Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Provision Expense ALLL ($ millions) ($ millions) 137.3 4.5 4.5 4.4 136.9 3.9 135.8 135.5 135.0 2.1 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 11

HAWAII’S ECONOMY Healthy Labor � September statewide seasonally-adjusted state unemployment rate was 2.5%, compared to 4.2% nationally Market Strong Visitor � YTD visitor arrivals: 6.3 million, up 4.7% vs prior year Industry � YTD visitor spending: $11.3 billion, up 8.5% vs prior year (data through 8/31/17) � Volume of single family home sales: +5.0% vs prior year Oahu � Volume of condominium sales: +5.8% vs prior year Residential � Median single-family home sale price: $757k, +3.4% vs prior year Real Estate (YTD through 9/30/17) � Median condominium sale price: $407k, +5.4% vs prior year Sources: Hawaii Tourism Authority, State of Hawaii Department of Labor and Industrial Relations, Honolulu Board of Realtors. 12

QUESTIONS

APPENDIX Non-GAAP Reconciliations 14