Bank of Hawaii Corporation

Good day, and thank you for standing by. Welcome to the Bank of Hawaii Corporation first quarter 2026 earnings conference call. At this time, all participants are on 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, Chang Park, Executive Vice President, Investor Relations. Please go ahead.

Good morning and good afternoon. Thank you for joining us today for our first quarter 2026 earnings conference call. Joining me today is our President and CEO, Jim Polk, CFO, Brad Sattenberg, and Chief Risk Officer, Brad Sherrison. Before we get started, I want to remind you 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 the earnings release. Both of these are available on our website, boh.com, under the investor relations link. And now I would like to turn the call over to Jim.

Thanks, Chang. Good morning and good afternoon, everyone. Thank you for joining us today. Before I get into the quarter, as this is my first earnings call as CEO, I want to say a few words about my predecessor, Peter Ho. Peter built something truly special here, a franchise defined by discipline, consistency, and a genuine commitment to the people of our island communities. With 16 years as CEO, he left this institution much stronger in every way that matters. I'm grateful for his confidence in me, and I'm honored to carry this forward. Now on to the quarter. Bank of Hawaii delivered another solid set of results to open 2026. Net interest income and our net interest margin expanded for the eighth consecutive quarter, driven by continued fixed asset repricing and a meaningful decline in total deposit costs. NIM increased 13 basis points as our fixed asset repricing engine continues to perform as expected. During the quarter, we remixed $643 million in fixed rate loans and investments from a roll-off yield of approximately 4% to a roll-on yield of 5.6%, continuing to lift the overall yield on earning assets. We remain on track toward our stated goal of approaching 2.9% NIM by the end of the year, and we feel good about that trajectory, even against an uncertain rate backdrop. Deposit trends continue to be encouraging, as our average cost of total deposits declines 17 basis points, achieving a beta of 36%. Normalizing for non-recurring expenses and non-interest income, our EPS came in at $1.39, reflecting the steady underlying earnings power of the franchise. We maintained strong capital and excellent credit quality while continuing to build on our leading deposit market share position here in Hawaii. The strategic formula has not changed. Bank of Hawaii operates in one of the most distinctive banking markets in the country. Concentrated and relationship driven, where four locally headquartered banks hold more than 90% of FDIC-reported deposits. In that environment, brand and trust are our structural advantages. They allow us to price deposits attractively, manage funding costs actively, and generate superior risk-adjusted returns across cycles. Turning to our home market, Hawaii's economy entered 2026 on solid footing. Near-record low unemployment, strong visitor spending, and an active construction pipeline anchored by significant military and public infrastructure investment. That said, we are watching the environment carefully. Tensions in the Middle East, rising energy costs, and the potential for sustained inflation are headwinds that could affect consumer confidence and travel demand as the year progresses. Our credit portfolio continues to reflect the underwriting discipline this bank has maintained through many cycles. I want to briefly address the recent Konolo storm in Hawaii and Typhoon Sinlaku in the West Pacific. First and foremost, Bank of Hawaii remains focused on supporting our employees, customers, and communities impacted by these events. We are in the early stages of assessing the potential impact of Typhoon Sinlaku, and it will take several weeks to gain clearer insight. Brad Shearson will cover the potential impact of the Konolo storm, as well as our overall credit profile in more detail shortly. I also want to highlight the progress we are making in wealth management, an area I expect will become an increasingly important part of the franchise's story. Through Banco Advisors and our partnership with Cetera, we continue to expand investment capabilities for our retail and private banking clients. Simultaneously, we are deepening coordination between our commercial and private banking teams around our high net worth client relationships. Importantly, we recently opened the Center for Family Business and Entrepreneurs, where we provide dedicated planning resources to Hawaii's family-owned businesses, encompassing financial and estate planning, succession planning, business valuation, and M&A advisory capabilities. For many of these families whose wealth is largely concentrated in their company, these are among the most consequential decisions they will face It is a capability uniquely suited to Bank of Hawaii's depth of relationships and trusted role in this market. I'll close with this. We remain focused on the strategy, the culture, and the values that have made Bank of Hawaii successful. I fully intend to carry forward the intensity of execution, the continued investment in our people and technology, and an unwavering commitment to the island communities that have trusted this institution for 128 years. I'm proud to be in this role, and I look forward to the work ahead. With that, I'll turn the call over to Brad Shareson to discuss credit, after which Brad Sattenberg will walk through the financials in detail. We'll then be pleased to take your questions.