First Hawaiian, Inc.

is being recorded. And now I'd like to introduce your host for today's program, Kevin Haseyama, Investor Relations Manager. Please go ahead, sir.

Thank you, Jonathan. And thank you everyone for joining us as we review our financial results for the second quarter of 2025. With me today are Bob Harrison, Chairman, President, and CEO, Jamie Moses, Chief Financial Officer, and Lee Nakamura, Chief Risk Officer. We have prepared a slide presentation that we will 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 GAAP measurements. And now I'll turn the call over to Bob.

Thank you for joining us today. I'll start by giving a quick overview of the local economy. Statewide seasonally adjusted unemployment rate continued to drift lower and was 2.8% in June compared to the national unemployment rate of 4.1%. Through May, total visitor arrivals were up 2.8% compared to last year as the strength in U.S. mainland arrivals more than offset weakness in the Japanese and Canadian markets. Year-to-date, spending was $9 billion, up 6.5% compared to 2024. Interesting to note, we went back and looked, and for the first five months of 2019 to the first five months of 2025, visitor arrivals are down still 3.9%, but the spend is up over 24%. So while there's been a few less visitors, the spend is up substantially. Turning to slide two, we had a very strong second quarter. Our net income increased over 23% compared to the prior quarter. The improvements in our results compared to the last quarter were broad-based, driven by higher net interest and non-interest income, good expense control, and lower provision expense. Our results also include the impact from a change in California tax law that resulted in a net benefit of $5.1 million. Turning to slide three, the balance sheet remains solid. We continue to be well capitalized with ample liquidity. Loans and deposits were stable during the quarter, and we repurchased about 1 million shares at a total cost of $25 million. We have $50 million of remaining authorization under the approved 2025 stock repurchase plan. We resumed reinvesting the investment portfolio cash flows in the second quarter, and we plan on maintaining the portfolio balance at its current level. Turning to slide four, total loans increased about $59 million, or 0.4% from the prior quarter. The largest increase was in the CNI portfolio, which was primarily due to a $125 million increase in dealer floor plan balances. This was largely offset by payoffs from several completed construction projects in our commercial real estate portfolio. Looking forward, we expect full-year loan growth will be in the low single digits. And now I'll turn it over to Jamie.