service. solutions. security.

Transcription

1 A N N UA L R E P O R T service. solutions. security.

2 contents 2011 data / 1 report on 2011 / 2 safety and strength / 4 business banking / 6 personal banking / 8 private banking & wealth management / 10 financial data / 12 senior management & senior officers / 14 First Hawaiian Bank ( founded in 1858, is Hawai i s oldest and largest financial institution, with total assets of $15.8 billion. The bank is headquartered in Honolulu and has 58 branches throughout Hawai i, three in Guam and two in Saipan; and an offshore branch in Grand Cayman, British West Indies. First Hawaiian can assist businesses in Japan looking to operate or invest in Hawai i through its BNP Paribas affiliate office in Tokyo. Our subsidiaries include First Hawaiian Leasing, Inc., primarily engaged in commercial equipment and vehicle leasing; FHB Guam Trust Co., offering personal trust services and estate plan administration to clients on Guam; and Bishop Street Capital Management, Inc., a registered investment advisor which furnishes money management services to institutional and individual clients. First Hawaiian Bank is a subsidiary of BancWest Corporation, whose other major subsidiary is California-based Bank of the West. board of directors / 16 branch network / inside back cover First Hawaiian Bank and Bank of the West are wholly owned subsidiaries of BNP Paribas ( a leader in global financial services and one of the strongest banks in the world (Rated AA- by Standard Poor's, third rating on a scale of 22). BNP Paribas has key positions in its three core businesses: Retail Banking, Investment Solutions and Corporate Investment Banking. BNP Paribas operates in more than 80 countries and has 205,000 employees. Besides its European domestic markets, BNP Paribas also has a large network in the United States and solid positions in Asia. bnp paribas management principles BNP Paribas has adopted these management principles for its worldwide operations. 1. Client Focus. Inspire our people to focus in an innovative way on clients first. 2. Risk-Aware Entrepreneurship. Undertake initiatives for development and efficiency while being accountable by: serve the global interest of BNP Paribas and its clients. 3. Caring for our People. Care for our people, by showing them respect, promoting equal opportunities and developing their talents and skills. 4. Leading by Example. Set an example through our own behavior and with regard to ethics by respecting regulations, applying compliance rules and behaving in a socially responsible way. ON THE COVER: View of Hanakapi ai Falls, Nā Pali Coast, Kaua i.

3 2011 data financial highlights (UNAUDITED) FOR THE YEAR credit ratings First Hawaiian Bank uninsured CDs: Net income $ 209,030 $ 202,111* Return on average tangible assets 1.48% 1.50 %* Efficiency ratio 43.7% 43.6 % AT YEAR END Total assets $ 15,830,240 $ 15,195,035 Loans and leases 8,392,044 8,268,900 Deposits 12,165,645 10,517,899 Stockholder s equity 2,668,190 2,623,465 YEAR-END FINANCIAL RATIOS (in thousands) Allowance for loan and lease losses to total loans and leases 1.40% 1.32 % Nonperforming assets to total assets (1) 0.21% 0.25 % Net loans and leases charged off to average loans and leases 0.41% 0.73 % (1) Nonperforming assets consist of nonperforming loans and leases and other real estate owned. * Excludes a one-time tax benefit of $10.5 million. Fitch Standard & Poor s Moody s Long-term A+ A A2 Short-term F1 A-1 P-1 $250 $200 $150 $100 $50 $0 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 $16 $14 $12 $10 Net Income (in millions) 2011 Net Income: $209.0 million 25-Year Compound Annual Growth Rate: 7.8% FIGURE FOR 2010 EXCLUDES ONE-TIME TAX BENEFIT OF $10.5 MILLION. FIGURE FOR 2009 EXCLUDES ONE-TIME LEVERAGED LEASE TAX BENEFIT OF $29.5 MILLION ASSOCIATED WITH THE SALE OF AIRCRAFT EQUIPMENT. Deposits (in billions) Total Deposits (12/31/11): $12.2 billion 25-Year Compound Annual Growth Rate: 5.4% Total Assets (in billions) Total assets (12/31/11): $15.8 billion 25-Year Compound Annual Growth Rate: 6.0% $8 $6 our core values T H E 5 C S O F F I R S T H AWA I I A N B A N K $4 $2 $ caring character cooperation competitiveness confidence Our employees have a service spirit, a sincere compassion combined with the professional capability to help customers, each other and this community. Our employees understand that our bank was built upon and depends upon trust between bank and customer, as well as trust among employees. Our employees work together as one team. We support each other and build customer relationships together. Our employees have a sense of urgency to provide quality services and products that meet customers needs. Our employees have a positive, quiet, can-do attitude based on training and expertise. Competence breeds confidence. 1

4 2011 IN REVIEW Another Solid Year of Growth Aloha, Despite the fragile economic recoveries here and around the nation, our bank had another strong year in 2011, with significant deposit growth and continued solid asset quality. We lead all Hawai i banks in assets, deposits, loans, card transaction processing, and credit and debit cards issued. Thanks to our highly productive employees, efficiency ratio rankings show that we re still the most efficient bank in Hawai i. In 2011: increase has led the Hawai i market each year since sluggish as many businesses remain cautious about the strength of the recovery. all other Hawai i banks combined and in the top quartile nationally as a percentage of total assets. the impact of a one-time tax benefit in best among Hawai i banks. relationship banking The key to our continued growth is Relationship Banking, our commitment to assign an individual Business, Private or Personal Banker to any customer with $5,000 or more in loans and deposits. These assigned bankers are committed to personal customer service. Valuing relationships is an integral part of the Five C s (Caring, Character, Cooperation, Competitiveness, Confidence) the core values featured throughout this report. new in 2011 offer personal trust services and estate plan administration. and access via a mobile phone or device. Donald G. Horner (left) and Robert S. Harrison. card, at our ATMs and 7,500 credit card locations, making it easier In closing, I want to thank two longtime members of our Board of Directors who retired during 2011: Dr. Fujio Matsuda and James C. Wo. They made significant contributions and will be missed. As I retire as Chief Executive Officer, I couldn t be more confident about our bank s leadership team. Bob Harrison, the incoming CEO, has been an effective banker for more than two decades. He and the management team care very much about our communities, our customers and our employees and will nurture First Hawaiian as a continuing force for service, solutions and security. Mahalo nui loa, Donald G. Horner Donald G. Horner CHAIRMAN AND CHIEF EXECUTIVE OFFICER (EFFECTIVE 2011) CHAIRMAN OF THE BOARD (EFFECTIVE JANUARY 1, 2012) 2

5 2012 AND BEYOND Optimism for Our Bank, Our Economy Aloha, Don Horner described the strategies and accomplishments that left our bank on a strong, solid footing as 2011 ended. We re optimistic that 2012 and beyond will be even better for our bank and the markets we serve. Here s why: 1. A recovering economy. Hawai i s economy is on a recovery trajectory, although slower than we would like. 2. Our Relationship Banking strategy. Our well-trained, seasoned staff members know their customers needs well. 3. Substantial liquidity and capacity to make loans thanks to our increase in deposits. 4. Strong credit ratings. 5. A complete, modern product mix. 6. Shared core values the Five C s (Caring, Character, Cooperation, Competitiveness, Confidence) that are highlighted in this report. We have a commitment to Service, Solutions and Security: service In this era of exponential growth in electronic banking, customers still prize face-to-face service. We are stepping up investments in employee training and in our branch system. In 2012, we will begin major renovations at Makiki branch and begin work on a new, expanded facility in Āina Haina. We just added 22 new ATMs in Zippy s to complement the off-branch convenience that already includes 7-11 Stores. solutions We are always looking ahead for banking solutions that allow our customers to anticipate change. For example, nearly 25 years ago we began processing JCB Card transactions for the growing flow of Japanese visitors. In 2008, we became the first Island bank to accept China Union Pay cards. In 2011, we customers are positioned to serve these markets. security We are Hawai i s largest and strongest bank and rank in the top tier of U.S. banks on many measures of strength and soundness. Our parent company, BNP Paribas, is one of the best rated banks in the world (AA- by Standard Poor's). community commitment First Hawaiian and our employee ohana willingly accept our responsibility to help others. During 2011, our bank and the First Hawaiian Bank Foundation, the state s largest corporate foundation, contributed to more than 400 nonprofit organizations. Our employees also embrace this spirit of lokomaika i (giving). They spent thousands of hours in 2011 helping nonprofits and reached deep into their wallets as well. More than 96% of employees to benefit 37 charities in Hawai i, Guam and Saipan. We re proud of what they do. In 2011, we launched the Japan-Hawai i Relief Fund, raising $1.2 million toward Japan s recovery from its earthquake/tsunami. We ve become a greener company. Changes in heating, lighting, air conditioning and computers lowered our electricity use by 19% since 2003; water use is down 36%. In all these ways, we show that we care about where we live. Don Horner s retirement as CEO on December 31, 2011, marks the end of a distinguished 33-year career with our bank. All of us at First Hawaiian have profited from working with Don and we ll continue to value his counsel as Chairman of our Board. Thanks to Don and many other fine bankers past and present, we move into 2012 as the #1 Hawai i bank in assets, deposits, lending, credit rating, credit cards and internal efficiency. We've got a great team in place, with new Chief Operating Officer Ray Ono and many other experienced leaders. Our basic strategy will remain the same: Building relationships with customers, embracing innovation, living up to our core values. The primary mission of First Hawaiian Bank is to be first in customer service and satisfaction. Hawaiian is more than our middle name. The word expresses our culture and commitment to our customers, fellow employees and community. Mahalo for trusting us, Robert S. Harrison Robert S. Harrison PRESIDENT AND CHIEF OPERATING OFFICER (EFFECTIVE 2011) PRESIDENT AND CHIEF EXECUTIVE OFFICER (EFFECTIVE JANUARY 1, 2012) 3

6 strength Hawai i s #1 bank in: NET WORTH $2.7 billion total equity capital More than all other Hawai i banks combined. Assets, Loans and Deposits. 43.7% EFFICIENCY RATIO One of the best in U.S. PROFITABILITY $209 million Small business lending More than all other Hawai i banks combined. credit quality 0.21% ratio of nonperforming assets to total assets, in top 10% of U.S. banks our size. A+ rating of long-term CDs by Fitch. Only A+ Hawai i bank. (Superior) rating from Bankrate.com Highest rated local bank. safety commitment to community Through corporate philanthropy and volunteerism, First Hawaiian and our employees support our neighbors and communities. Hawai i s Largest Corporate Foundation. During 2011, the First Hawaiian Bank Foundation contributed to more than 400 nonprofit organizations. Our philanthropy supports education, health and human services, community development, culture and the arts. Employee Generosity. Kōkua Mai, our employee charitable giving campaign, raised $576,000 for 37 nonprofit service agencies. Kōkua Mai was generously supported at every level of the bank, from tellers to vice presidents to senior management. Employee Volunteerism. It's a proud tradition for First Hawaiian Bank s 2,151 employees to say "Yes" to touching lives where we live and work. They spend thousands of hours in mentoring youth, coaching, scouting, food drives and volunteering on more than 100 nonprofit boards. In all these ways, the First Hawaiian Bank ohana demonstrates our united commitment to the families and neighborhoods of Hawai i, Guam and Saipan. 4

7 confidence Our bank employees have a positive, can-do attitude. We have confidence in First Hawaiian Bank and we know they have confidence in us and in their ability to help us, said President Tan Tek Lum of Lum Yip Kee, Limited. We and First Hawaiian Bank have shared values. If not, our family wouldn t have stayed with the bank for more than a century. They re very good to us. and rice, merchandising and real estate. Today, his grandchildren and great-grandchildren still count on First Hawaiian with confidence. Photo: First Hawaiian Bank Vice President Russell Loo (standing, center) with the Lum Yip Kee, Limited leadership team. President Tan Tek Lum (standing, left), Executive Vice President Wing Tek Lum (standing, right) and (seated, left to right) Treasurer Jeffrey M.C. Lum and Secretary Melissa Lum. 5

8 Business Banking Business Banker Let a Business Banker help you access the financial tools available to grow your business. Our Business Bankers average 20 years of experience in the financial services industry. Commercial Lending More commercial and industrial loans than any other Hawai i bank. 63 Convenient Branches, 303 ATMs FHB Business OnLine SM Secured online access. Web Cash Manager A bank in your computer. Credit Card Merchant Services Hawai i s largest (and only locally-based) card acceptance and processing for MasterCard, Visa, American Express, JCB, Discover, Diners Club, China Union Pay, BC Global Commercial Real Estate We make land and construction loans to borrowers in our primary market areas. Payroll Services Business Savings, Certificates of Deposit and Checking Business Cash Manager Collection and disbursement, sweep accounts and more. Accounting Support Services Controlled disbursement, check image CD-ROM, ACH debit block. Bill Payment Services Condominium Association Lending Priority Banking SM Plan for Business Discounts and premium rewards. Business FirstTerm SM Loans, Business FirstLine SM of Credit Captive Insurance Serving captive insurance companies longer than any other Hawai i bank. edeposit Service Deposit checks from your office electronically by scanning images. Employee 401(k) Plans Private Banking for Corporate Officers Equipment Financing/Leasing Trust and Investment Management Succession Planning Insurance SBA, FHA and HEDCO (Hawaii Economic Development Corp.) Loans OHA Mālama Loans For Native Hawaiian consumers and businesses in partnership with the Office of Hawaiian Affairs and U.S. Administration for Native Americans. It s In The Cards Priority Rewards SM Business Credit Cards Pay expenses, earn cash rebates, gift cards, no-blackout travel, cruises, Las Vegas packages. Rewards can be consolidated at the company level. United MileagePlus Business Credit Cards Pay expenses, earn miles on United and 26 other Star Alliance airlines. Especially for Guam and Saipan residents. Corporate Credit Cards Authorization controls, general ledger interface, online information. For Dealer Financing Vehicle Inventory Financing Largest flooring lender in Hawai i DataScan Dealer Access System Online inventory management tool. Electronic Bill Presentment and Payment 6

9 character Our employees understand that our bank was built upon and depends upon trust between bank and customer. In our business, integrity is everything. We ve built a relationship of trust with First Hawaiian Bank over the years, said Linda Fernandez, President of Fun Factory, Inc., part of the 109-year-old Fernandez family entertainment business. The bank stepped in to help us in tough times in the past and their door is always open to assist us. We provide joy. It s great to see kids eyes light up, added Scott Fernandez, President of E.K. Fernandez Shows, Inc., the carnival side of the operation. But, of course, it s a business, too. The bank has been instrumental in giving us financing, even helping with international finance. To do that they need to understand our unique business, which they do. Photo: Left to right, First Hawaiian Bank Senior Vice President Wayne Suehiro, Linda Fernandez, Scott Fernandez. 7

10 Personal Banking Personal Banker Build a relationship with a banker who ll be your liaison to resources including banking, trust, investments and insurance. Our Personal Bankers average 21 years of experience in the financial services industry. FHB Mobile Banking Bank through your mobile phone or device. Consumer Convenience 63 branches, 303 ATMs. 7-Day Supermarket Banking in Hawai i s largest Safeway store, located in East Honolulu. The Priority Banking Plan SM Rewards you with discounts on loans and fees, premium deposit rates, preferred credit lines and more based on how much personal banking you do with us. FHB OnLine SM Bank whenever, wherever there s Internet access. FHB Direct SM State-of-the-art online deposit account opening. Approvals in Seconds SM Instant answers to personal loan and credit card requests online (at fhb.com) or at a branch. Savings and Checking Accounts A variety of personal accounts. Individual Retirement Accounts (IRA) PrimeTime SM (Hawai i) and Primera (Guam/Saipan) For those age 50 or better, free and discounted banking services, merchant discounts and special event invitations. Wealth Advisory Services Personalized wealth management solutions including investments, insurance, estate and retirement planning. Credit and Debit Cards No. 1 issuer of Visa and MasterCard products in Hawai i. Priority Rewards SM Credit Cards Earn CashPoints SM redeemable for cash rebates, gift cards, no-blackout travel on any airline, hotels, cruises, Las Vegas packages. Cash Rewards Credit Cards Up to 3% cash back, automatically. United MileagePlus Credit Cards Earn miles for anywhere United Airlines flies. Especially for Guam and Saipan residents. Mortgage Lending First Hawaiian services $5 billion in home mortgage loans. Equity FirstLine SM Revolving credit line based on your home equity. Equity FirstLine SM Plus Rate Lock feature allows you to convert any portion of your outstanding balance to a low, fixed-rate amortizing loan. Car and Truck Lending Top lender to consumers in Hawai i. PayAnyDay Personal Loans Personal FirstLine SM Plus A secured line of credit for homeowners with possible tax benefits. Personal FirstLine SM of Credit An unsecured revolving credit line; no collateral required. Military Appreciation Package Checking, savings and discounted loan services for active and reserve military personnel. OHA Mālama Loans Offered to Native Hawaiian consumers and businesses in partnership with the Office of Hawaiian Affairs and U.S. Administration for Native Americans. Specialty Loans for Solar Heating/Photovoltaic Energy YesExpress Money SM Transfer New global remittance service. 8

11 cooperation Our bank employees work together as one team to serve our customers. We build customer relationships together. We have a lot of long-time employees because of our spirit of cooperation; I see the same with First Hawaiian. The bank s employees cooperate to meet our needs, said Hawaiian Host, Inc. We have a lot of facilities and equipment but the people absolutely make it happen same with First Hawaiian. Both companies care a lot for their employees and customers. Our ties with the bank go back to Mamoru Takitani, Hawaiian Host s founder. They truly work hard to understand our business and supported our expansion to a new factory in Iwilei and sales of our chocolate and macadamia products to over 24 countries throughout the world. First Hawaiian s values are very compatible with Hawaiian Host s value statement. That s what has made us longstanding business partners. Photo: Keith Sakamoto (left) and First Hawaiian Senior Vice President Mitchell Nishimoto. 9

12 Private Banking & Wealth Management Service: An integrated team of professionals serving as your trusted advisors. Solutions: A full range of personal and business wealth management services. Security: a 153-year history of serving your financial needs as Hawai i s oldest and largest bank. Our interdisciplinary team works together to develop and execute a comprehensive financial plan focused on preserving and growing your assets in accordance with your goals and values. We tailor financial solutions fitted to every stage of your lifecycle young adult, thirties, middle age and seniors. PrivateInvest SM Comprehensive consulting and portfolio management for Private Banking clients. A Wealth Management Advisor works with a select group of independent investment advisors and your Private Banker to achieve your investment objectives through our access to some of the nation s best investment managers. Bishop Street Capital Management A Hawai i-based investment management subsidiary of First Hawaiian Bank. BSCM is an SEC Registered Investment Advisor that provides investment services to individuals, corporations, unions and institutions. Insurance Our licensed specialists review your insurance needs and select from only highly-rated insurers to find you the best life, disability or long-term care policy at the best value. Annuities Income for life to supplement your retirement income. Private Banking Your assigned Private Banker assists you in constructing a customized plan and monitors that plan to insure your goals are being met. The Private Banker serves as your Financial Quarterback and gives you access to some of the finest professionals in the business of banking, estate planning, insurance and investments. Our Private Bankers average 23 years of experience in the financial services industry. Wealth Advisory Services An integrated suite of personalized wealth management solutions including estate and business succession planning, portfolio management and insurance. Personal Trust Services Experienced Personal Trust Officers help you provide for your beneficiaries in the future while protecting your assets and managing your taxes today. FHB Guam Trust Co. First bank on Guam to offer personal trust services. Institutional Investment Management First Hawaiian has decades of experience providing institutional investment management to serve public and private foundations, endowments, hospitals, schools, unions and corporations. Taft-Hartley We ve been helping labor unions with their banking, custody and investment needs longer than any other Hawai i trust company. Employee Benefit Plans A full range of tailored plan services including trusteeship, recordkeeping, employee enrollment and communication, and mutual fund screening. Corporations/Institutions/Endowments We customize investment strategies to help our clients meet their specific goals. From short-term, high-liquidity portfolios to long-term, income and capital appreciation strategies, we are able to construct a portfolio to meet our clients needs. 10

13 competitiveness Our bank employees have a sense of urgency and commitment to meet customers needs. First Hawaiian saw what we needed and took advantage of the opportunity to compete for our business. Moving to First Hawaiian was seamless, said Don Young, president of 123-year-old, family-owned Haleakala Ranch Company on Maui. First Hawaiian and the Ranch are two of the oldest companies in Hawai i, but our business relationship is just three years old. We switched our banking to First Hawaiian because they share our pride in the land and our long-term focus. Our shareholders are committed to land stewardship and the paniolo heritage. Without the financing support we ve gotten from First Hawaiian, it doesn t work. With them, financing doesn t become an obstacle to decision-making. Photo: Left to right, Haleakala Ranch Vice President CFO John Kreag, First Hawaiian Senior Vice President Brian Kakihara, Haleakala Ranch President Don Young. 11

14 condensed consolidated balance sheets (UNAUDITED) (in thousands) As of December 31, ASSETS Cash and due from banks $ 298,920 $ 190,957 Interest-bearing deposits in other banks 1,416,621 1,206,766 Investment securities 3,981,458 3,804,493 Loans and leases 8,392,044 8,268,900 Less allowance for loan and lease losses 117, ,955 Net loans and leases 8,274,952 8,159,945 Intangible assets, net 1,008,743 1,011,978 Other assets 849, ,896 TOTAL ASSETS $ 15,830,240 $ 15,195,035 $10 $9 $8 $7 $6 $5 Loans & Leases (in billions) Total Loans Leases (12/31/11): $8.4 billion 25-Year Compound Annual Growth Rate: 6.4% LIABILITIES AND STOCKHOLDER S EQUITY Deposits Interest-bearing $ 11,335,918 $ 9,739,139 Noninterest-bearing 829, ,760 Total deposits 12,165,645 10,517,899 Short-term borrowings 624,905 1,711,520 Long-term debt 30,941 50,946 Other liabilities 340, ,205 Total liabilities 13,162,050 12,571,570 Total stockholder s equity 2,668,190 2,623,465 TOTAL LIABILITIES AND STOCKHOLDER S EQUITY $ 15,830,240 $ 15,195,035 $4 $3 $2 $1 $ Most Equity Among All Hawai i Banks condensed consolidated statements of income (UNAUDITED) (in thousands) Year Ended December 31, NET INTEREST INCOME Net interest income $ 498,194 $ 507,429 Provision for loan and lease losses 42,100 62,900 Net interest income after provision for loan and lease losses 456, ,529 First Hawaiian Bank $2,668 Bank of Hawaii $927 Central Pacific Bank $540 American Savings Bank $489 Territorial Savings Bank $198 MILLIONS $0 $1,000 $2,000 $3,000 SOURCE: EQUITY CAPITAL FIGURES IN FEDERAL GOVERNMENT REGULATORY REPORTS OF DECEMBER 31, 2011 (BASED ON GAAP ACCOUNTING). NONINTEREST INCOME Trust and investment services income 24,981 23,571 Service charges on deposit accounts 48,895 47,552 Other services charges and fees 65,450 62,545 Securities gains (losses), net 1,724 (476) Other 27,174 25,649 Total noninterest income 168, ,841 NONINTEREST EXPENSE Salaries and employee benefits 157, ,523 Net occupancy expense 22,080 20,825 Equipment expense 12,760 12,623 Intangible amortization 2,593 2,672 Other 95, ,372 Total noninterest expense 290, ,015 NET INCOME Income before income taxes 333, ,355 Provision for income taxes 124,826 99,726 Net income $ 209,030 $ 212,629 Diversified Loan & Lease Portfolio 26% Commercial Real Estate 23% Commercial 11% Consumer 4% Other 36% Residential Real Estate 12

15 caring Our bank employees have a sincere compassion and the ability to help customers and the community. Financial support from a caring company like First Hawaiian Bank and its employees means so much to us, said Donna Witsell, Executive Director of HUGS (Help, Understanding Group Support). To underscore their commitment, two First Hawaiian bankers serve on our volunteer board as well. HUGS provides emotional and financial assistance to families like the Grays who have a seriously ill child, providing respite care for exhausted parents, making hospital visits, and offering space for families to gather with peers so they know I m not alone. When a company like First Hawaiian cares, as it has through HUGS 30-year history, we know we re not alone, either. Photo: First Hawaiian Bank Foundation President Sharon Brown (far right), HUGS Executive Director Donna Witsell (2nd from right) and, at left, the Gray family (parents Rolando and Maria, children Jaevhyn and Jezrhyel). 13

16 Senior Management Left to right, Robert T. Fujioka, Vice Chairman Chief Lending Officer; Albert M. Yamada, Vice Chairman, CFO Chief Administrative Officer; Raymond S. Ono, Vice Chairman Chief Operating Officer, Gary L. Caulfield, Vice Chairman Chief Information Officer; Robert S. Harrison, President Chief Executive Officer. Above, left to right, Executive Vice Presidents Stephen J. Williams (O ahu Region II), Alan H. Arizumi (Business, Dealer Card Services Group), James (Kimo) W. Mills (Service Delivery Division), Corbett A.K. Kalama (Wealth Management Group), Kristi L. Maynard (Treasury Investment Division) and Brandt G. Farias (Marketing Communications Division). At left, left to right, Executive Vice Presidents William E. Atwater (General Counsel Secretary), Iris Y. Matsumoto (Human Resources Division), Winston K.H. Chow (Consumer Banking Group), Melvin W.Y. Mow (Chief Risk Officer) and Curt T. Otaguro (O ahu Region I). 14

17 Senior Officers First Hawaiian Bank EXECUTIVE VICE PRESIDENTS Gina O.W. Anonuevo Chief Compliance Officer Brian N. Sunada Commercial Real Estate SENIOR VICE PRESIDENTS Benjamin K. Akana Main Banking Region Joanne H. Arizumi Main Banking Region Craig S. Avellar Wealth Advisory Division Ernest L. Bonser Risk Management Joyce W. Borthwick Real Estate Lending Support Sharon S. Brown Sales, Service Training Joy P. Cabildo Residential Real Estate Neill A. Char Private Banking Rene M. Chinen Legal Corporate Services Michael A. Coates Operations Services John C. Coltrin Western Region Dealer Center Rachel A. Hanlon Private Banking Brent E. Helgeson Dealer Division Jeffrey N.M. Higashi Corporate Banking Shigeo Hone Japan Business Development David A. Honma Hawai i Region Office Leland K. Kahawai Kahului Branch Brian M. Kakihara Maui Region Office Marion M. Kamei Private Banking Kent R. Lau Main Banking Region Robin S. Midkiff Personal Trust Kenneth L. Miller Investment Services Michael J. Murakoshi Kaua i Region Office Keith H. Nagata Business Services Candice Y. Naito Kapi olani Banking Region Vernon Y. Nakamura Kalihi Branch Michael T. Nishida IT Infrastructure Mark F. Oyadomori Wealth Advisory Division Kenneth C.S. Pai Trust Real Estate Services Alethea A. Seto Sales, Service Training Bryan I. Shigezawa Treasury Investment Guy J. Shindo Branch Real Estate Gregory J. Sitar University Branch Wayne K. Suehiro Pearlridge Branch Lynn M. Takahashi Private Banking Mark S. Taylor Trust Service Center Michael G. Taylor Wealth Advisory Division Lois M. Tojio Aina Haina Branch Elizabeth L. Tom Private Banking Michael A. Tottori Wealth Advisory Division Gordon M. Uechi Legal Corporate Services Edward G. Untalan Maite Banking Center Glenn N. Wachi Kapi olani Banking Region First Hawaiian Leasing, Inc. Robert S. Harrison Chairman Robert T. Fujioka Chief Executive Officer Keethe T. Koyanagi President Brian Y.C. Lau Senior Vice President Bishop Street Capital Management Robert T. Fujioka Chairman Chief Executive Officer Michael K. Hirai President, Chief Investment Officer Director of Fixed Income Kenneth L. Miller Senior Vice President Director of Equities Jennifer C.M. Carias Senior Vice President Senior Portfolio Manager Ryan S. Ushijima Senior Vice President Chief Compliance Officer First Hawaiian Bank Foundation Laura-Lynn V. Dacanay Guam CNMI Region Office Mitchell E. Nishimoto Kapi olani Banking Region Wesley M. Wakamura Kapi olani Banking Region Robert S. Harrison Chairman Thomas W. Dixon, Jr. Chief Credit Officer Credit Administration Christopher L. Dods Card Services John S. Fujimoto Deputy General Auditor Jerome K. Fukuhara Retail Planning Todd T. Nitta Dealer Division Neal K. Okabayashi Legal Corporate Services Glen R. Okazaki Loan Operations Carrie K.S. Okinaga Legal Carol M. Ono Operations Research Development Vernon Y.C. Wong Wealth Advisory Division Donald P. Yannell Waikk Branch Sherri Y. Yim General Auditor Walter A. Dods, Jr. Chairman Emeritus Sharon S. Brown President 15

18 Board of Directors Robin K. Campaniano General Partner, Ulupono Initiative François Dambrine Head of Retail Banking in the U.S.A., BNP Paribas W. Allen Doane Chairman Chief Executive Officer (Retired), Alexander Baldwin, Inc. Walter A. Dods, Jr. Chairman Chief Executive Officer (Retired), First Hawaiian Bank Chairman, Alexander Baldwin, Inc. Dr. Julia Ann Frohlich President Emeritus, Blood Bank of Hawaii Michael K. Fujimoto President Chief Executive Officer, HPM Building Supply Paul Mullin Ganley Partner, Carlsmith Ball LLP Trustee, Estate of S.M. Damon Robert S. Harrison President Chief Executive Officer, First Hawaiian Bank Warren H. Haruki President Chief Executive Officer, Grove Farm Company, Inc. Chairman Chief Executive Officer, Maui Land Pineapple Company, Inc. President (Retired), Verizon Hawaii Inc. Robert P. Hiam President Chief Executive Officer, Hawaii Medical Service Association John A. Hoag President (Retired), First Hawaiian Bank Donald G. Horner Chairman of the Board, First Hawaiian Bank David C. Hulihee President, Royal Contracting Co., Ltd. Chairman Chief Executive Officer, Grace Pacific Corporation Dr. Richard R. Kelley Chairman Emeritus, Outrigger Enterprises, Inc. Bert T. Kobayashi, Jr. Senior Partner, Kobayashi, Sugita Goda Faye Watanabe Kurren President Chief Executive Officer, Hawaii Dental Service Dee Jay A. Mailer Chief Executive Officer, Kamehameha Schools Dr. Richard T. Mamiya Heart Surgeon (Retired) Leighton S.L. Mau President Chief Operating Officer, Waikiki Business Plaza, Inc. Wesley T. Park President, Maunawili Consulting LLC J. Michael Shepherd Chairman Chief Executive Officer, BancWest Corporation and Bank of the West John K. Tsui Director and Non-Executive Chairman, Zilber, Ltd. Chairman, Clarence T.C. Ching Foundation President Chief Operating Officer (Retired), First Hawaiian Bank Allen B. Uyeda President Chief Executive Officer, First Insurance Company of Hawaii, Ltd. Jenai Sullivan Wall Chairman Chief Executive Officer, Foodland Super Market, Ltd. Robert C. Wo President Secretary, BJ Management Corporation Chairman, C.S. Wo Sons, Ltd. Also a member of the BancWest Corporation Board of Directors Throughout 2011, Donald G. Horner was Chairman and Chief Executive Officer of First Hawaiian Bank and Robert S. Harrison was President and Chief Operating Officer of the bank. Effective January 1, 2012 bank, but remains Chairman of the Board Officer of the bank. 16

19 NI IHAU KAUA I Lihu e O AHU GUAM Kailua Honolulu MOLOKA I MAUI Hagatna Lana i City LANA I Wailuku HAWAI I SAIPAN Hilo The 63 Branches of First Hawaiian Bank Kailua-Kona O AHU (35) Honolulu: Aina Haina Chinatown Downtown Main Eaton Square Hawai i Kai Hickam AFB Kahala Kaimukī Kalihi Kapahulu Kapahulu Market Kapi olani King-Liliha Liliha Makiki Mānoa Moanalua Sand Island University Waikīkī Ward Windward O ahu: Kahuku Kailua Kāne ohe Kāne ohe Bay Aina Haina Shopping Center 2 North King Street 999 Bishop Street 438 Hobron Lane 7110 Kalaniana ole Highway 30 Hickam Court 1348 Hunakai Street 3599 Wai alae Avenue 2250 North King Street 433 Kapahulu Avenue 888 Kapahulu Avenue 1580 Kapi olani Boulevard 445 North King Street 1420 Liliha Street 1111 South Beretania Street Mānoa Marketplace 1000 Mapunapuna Street 120 Sand Island Access Road 2411 South King Street 2181 Kalākaua Avenue 250 Ward Avenue Kahuku Sugar Mill Shopping Center 705 Kailua Road Windward City Shopping Center Kamehameha Highway HAWAI I ISLAND (8) Hilo (2) Hilo Shopping Center 120 Waiānuenue Avenue Honoka a Mamane Street Kamuela Kamuela Shopping Center Kealakekua Mamalahoa Highway Kona Palani Road Pāhoa Government Main Road Waikoloa Waikoloa Highlands Shopping Center MAUI (7) Kahana Kahana Gateway Center Kahului 20 West Ka ahumanu Avenue Kīhei Lipoa Shopping Center Lahaina 215 Papalaua Street Pukalani 67 Makawao Avenue Wailea 161 Wailea Ike Place Wailuku 27 Market Street KAUA I (7) Hanapepe- Ele ele Ele ele Shopping Center Kapa a Kūhiō Highway Kōloa 3506 Waikomo Road Kukui Grove Kukui Grove Shopping Center Līhu e 4423 Rice Street Princeville Kūhiō Highway Waimea 4525 Panakō Road LĀNA I (1) Central/Leeward O ahu: Ewa Beach Ewa Beach Shopping Center Hale iwa Kamehameha Highway Kapolei Kapolei Shopping Center Mililani Mililani Shopping Center Pearl City 890 Kamehameha Highway Pearlridge Moanalua Road Schofield Barracks Building 3321 Wahiawā 730 California Avenue Wai anae Farrington Highway Waipahu Leoku Street Lāna i City GUAM (3) 644 Lāna i Avenue Dededo Compadres Mall Maite 400 Route 8 Tamuning 645 Route 1, South Marine Corps Drive SAIPAN (2) Gualo Rai Oleai Gualo Rai Commercial Center Oleai Center, Beach Road, Chalan Laulau

20 First Hawaiian Bank 999 Bishop Street Honolulu, Hawai i