First Hawaiian, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the first Hawaiian Bank Q1 2021 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. If anyone should require assistance during the conference, please press star zero on your touchtone telephone. As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Kevin Asayama.

Thank you, Sylvia. Thank you, Sylvia. And thank you, everyone, for joining us as we review our financial results for the first quarter of 2021. With me today are Bob Harrison, Chairman, President, and CEO, Ravi Malela, CFO, and Ralph Misik, 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 one 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 measurements to the most directly comparable gap measurements. And now I'll turn the call over to Bob.

Thank you, Kevin. Good morning, everyone. I appreciate you joining us today. Turning to slide two, I'll start by giving a quick update on the current situation in Hawaii. Overall, the state continues to do a good job of controlling the spread of COVID-19. The number of new daily cases remains steady, and the vaccine rollout is going well, and there are no issues with hospital capacity. As of Wednesday, the statewide seven-day average of new cases was 80, and the corresponding positivity rate was 1.6%. Also on Wednesday, the CDC reported that Hawaii had the lowest seven-day case rate per 100,000 residents of all 50 states. Vaccine rollout continues to go well. Through Wednesday, about 44% of those 18 years and older had received at least one dose, and 32% have been fully vaccinated. We're also seeing signs of recovery in the visitor industry, with the average daily visitor arrivals steadily increasing since the start of the year. Also this week, the state announced that effective May 11th, inter-island travelers who have been vaccinated in Hawaii and have completed the required 14-day waiting period will be exempt from pre- or post-travel testing and quarantine requirements. While it's not a full vaccine passport, it's certainly a step in the right direction. The state's seasonally adjusted unemployment rate remained high at 9% in March. We're hopeful that as visitor arrivals continue to increase and the local economy continues to reopen, the unemployment rate will improve. Housing market remains very strong. In the first quarter, median single-family home price on Oahu was $915,000, up 17% over the prior year, and the median condo price was $455,000, up 5.8% from the prior year. Also pleased to report that last month we published our third annual ESG report. In this year's update, we have adopted the SASB reporting framework, and our report is available for download on our Investor Relations website. Turning to slide three, I'll briefly go over our first quarter results. While the outlook for the local economy is getting brighter, the first quarter remained challenging. Growth in loans was driven by PPP loans, as we originated $459 of new PPP loans. Deposits grew by $906 million, driven by growth in consumer and commercial deposits. Credit quality remained excellent. Our credit metrics have continued to improve, and over 96% of borrowers who went on deferral have returned to pay. Diluted EPS was 44 cents, and the board maintained the dividend at 26 cents per share. Finally, we completed several significant customer-facing technology projects in Q1, highlighted by our completely redesigned website, fhb.com. At the end of the presentation, I'll make a few comments on our digital strategy. And now I'll turn it over to Ravi to go over the financials.