Bank of Hawaii Corporation

Good day and thank you for standing by. Welcome to the Bank of Hawaii Corporation's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Cheng Park, Director of Investor Relations. Please go ahead.

Good morning and good afternoon. Thank you for joining us today for our second quarter 2025 earnings conference call. Joining me today is our Chairman and CEO, Peter Ho, President and Chief Banking Officer Jim Polk, CFO Brash at Merck, and Chief Risk Officer Brash Harrison. Before we get started, I want to remind you today that today's conference call will contain some forward-looking statements. And while we believe our assumptions are reasonable, the actual results may differ materially from those projected. During the call today, we'll be referencing a slide presentation as well as an earnings release. Both of these are available on our website, boh.com, under the investor relations link. And now I'll turn the call over to Peter.

Thanks, Chang, and good morning or good afternoon, everyone. Thanks for your interest in Bank of Hawaii. The second quarter of 2025 was another solid quarter for the bank. Earnings per share advanced for the fourth consecutive quarter. Net interest income and net interest margin expanded for the fifth consecutive quarter as our margin reversion continues towards more historical levels. Expenses were well controlled. Credit remains pristine. Capital advanced to 14.2% on a Tier 1 basis, while ROCE hit 12.5%. I'll begin by quickly reviewing our core and longstanding operating strategy, and then touch on conditions in our core Hawaii market. I'll then kick it over to Brad Sherrison to discuss our credit profile, and then Brad Sattenberg will expand a bit on the financials, and this is first earnings call as officially our new CFO. As I think most of you know, Bank of Hawaii has a unique business model. Fundamentally, we lean into a unique marketplace in which four locally headquartered banks own more than 90% of the market's FDIC-reported deposits. We've built a fortress market position by leveraging a best-in-market brand position, which enables us to deposit price attractively. This cost advantage has historically allowed us to generate strong returns on a superior risk-adjusted basis. We've been successful on both a short and long-term basis, methodically building market share. For several quarters now, we've been successful in stemming deposit remix from lower or no-yield deposits to higher-yielding deposits while holding overall deposit levels relatively stable. This has helped us bring down both our cost of interest-bearing deposits and total cost of deposits. Concurrently, our fixed assets have been remixing into higher-yielding earning assets. In the quarter, $572 million in fixed slash variable assets cash flowed off at a roll-off rate of 4% and into a roll-on rate of 6.3%. It is this slowing of deposit remix matched with the continued deal decreation in the fixed asset cash flow that has largely enabled us to drive up both net interest margin and net interest income for five quarters now. Assuming rates hold, we would anticipate that this trend will continue, approaching more historic NIM levels, albeit with substantially higher earning asset levels than previously. Switching to local market conditions, here you can see that the employment picture in Hawaii continues to outperform the broader U.S. economy. The visitor industry remains solid, with visitor expenditures up 6.5% year-to-date and arrivals up 2.8% through May. This growth is being driven by the U.S. continental market, both east and west, and offset partially by lower international performance out of Japan and Canada. RevPAR continues to perform consistently. Residential real estate in the islands remains stable, with single-family home prices rising modestly, while condo prices were off 0.5% year-to-date. And now let me turn the call over to Brad Sherrison to talk about credit. Brad?