First Hawaiian (FHB) investor relations material

Executive summary

• Net income for Q2 2026 was $73.4 million, or $0.60 per diluted share, up from $67.8 million in Q1 2026 and $73.2 million in Q2 2025, with EPS up 3% year-over-year.

• Announced a pending all-stock acquisition of TriCo Bancshares (Tri Counties Bank), valued at approximately $2 billion, expected to close by year-end 2026, aimed at expanding market presence and long-term shareholder value.

• Quarterly cash dividend of $0.26 per share declared, consistent with prior quarters and payable August 28, 2026.

• Local economic indicators remain positive, with low unemployment, increased tourism, and rising housing prices supporting stable performance.

Financial highlights

• Net interest income for Q2 2026 was $171.0 million, up $3.5 million sequentially and 5% year-over-year, with net interest margin rising to 3.25%.

• Noninterest income reached $60.3 million, up $7.5 million from Q1 2026 and 12% year-over-year, driven by BOLI income, excise tax refund, and service charges.

• Noninterest expense was $130.4 million, including $4.2 million in TriCo transaction costs, up $2.6 million sequentially and 4% year-over-year.

• Efficiency ratio improved to 56.2% from 57.8% in Q1 2026.

• Provision for credit losses was $5.6 million, with allowance for credit losses at 1.15% of total loans and leases.

Outlook and guidance

• Full-year loan growth expected in the 3%-4% range, with NIM outlook revised to 3.24%-3.25% and Q3 NIM expected at 3.27%.

• Noninterest income guidance unchanged at $220 million for the year; expenses projected at $515–$520 million, excluding TriCo transaction costs.

• The TriCo acquisition is anticipated to expand geographic reach and product capabilities, though integration risks and regulatory approvals remain.

• Management continues to monitor economic conditions in Hawaii and California, with stable tourism and low unemployment supporting local markets.