# BANK OF HAWAII CORP (BOH) Informational only - not investment advice. CIK: 0000046195 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=46195 Filing source: https://www.sec.gov/Archives/edgar/data/46195/000004619526000015/boh-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 887823000 | USD | 2025 | 2026-02-24 | | Net income | 205902000 | USD | 2025 | 2026-02-24 | | Assets | 24176364000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000046195.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 457,900,000 | 503,794,000 | 550,173,000 | 587,397,000 | 546,424,000 | 526,716,000 | 597,366,000 | 810,375,000 | 863,751,000 | 887,823,000 | | Net income | | 181,461,000 | 184,672,000 | 219,602,000 | 225,913,000 | 153,804,000 | 253,372,000 | 225,804,000 | 171,202,000 | 149,994,000 | 205,902,000 | | Diluted EPS | | 4.23 | 4.33 | 5.23 | 5.56 | 3.86 | 6.25 | 5.48 | 4.14 | 3.46 | 4.63 | | Assets | | 16,492,367,000 | 17,089,052,000 | 17,143,974,000 | 18,095,496,000 | 20,603,651,000 | 22,784,941,000 | 23,606,877,000 | 23,733,296,000 | 23,601,114,000 | 24,176,364,000 | | Liabilities | | 15,330,830,000 | 15,857,184,000 | 15,875,774,000 | 16,808,664,000 | 19,229,144,000 | 21,173,330,000 | 22,289,882,000 | 22,319,054,000 | 21,933,340,000 | 22,325,152,000 | | Stockholders' equity | | 1,161,537,000 | 1,231,868,000 | 1,268,200,000 | 1,286,832,000 | 1,374,507,000 | 1,611,611,000 | 1,316,995,000 | 1,414,242,000 | 1,667,774,000 | 1,851,212,000 | | Cash and cash equivalents | 755,721,000 | 879,607,000 | 447,851,000 | 525,969,000 | 558,658,000 | | 560,434,000 | 401,767,000 | 1,000,944,000 | 763,571,000 | 946,520,000 | | Net margin | | 39.63% | 36.66% | 39.92% | 38.46% | 28.15% | 48.10% | 37.80% | 21.13% | 17.37% | 23.19% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000046195.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 1.38 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.28 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.14 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 46,842,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 199,751,000 | | 1.12 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 46,061,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 211,945,000 | | 1.17 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 210,347,000 | 30,396,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 210,356,000 | 36,391,000 | 0.87 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 36,391,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 213,530,000 | | 0.81 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 220,648,000 | 40,358,000 | 0.93 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 219,217,000 | 39,162,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 214,286,000 | 43,985,000 | 0.97 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 218,535,000 | 47,637,000 | 1.06 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 227,708,000 | 53,345,000 | 1.20 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 227,294,000 | 60,935,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 222,207,000 | 57,432,000 | 1.30 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/46195/000004619526000036/boh-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-04-27 Report date: 2026-03-31 Item 2. Management’s Discussion and Analysis (“MD&A”) of Financial Condition and Results of Operations The following MD&A is intended to help the reader understand the Company and its operations and is focused on our financial results for the first quarter of 2026, including comparisons of year-to-year performance, trends, and updates from the Company’s most recent 10-K filing. Discussion and analysis of our 2025 fiscal year, as well as the year-to-year comparison between fiscal years 2025 and 2024, are included in Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 24, 2026. Forward-Looking Statements This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Given these risks and uncertainties, you should not place undue reliance on any forward-looking statement as a prediction of our actual results. Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate, and actual results may differ materially from those projected due to global economic conditions and a variety of risks and uncertainties, including, but not limited to: (1) Our business is sensitive to regional business and economic conditions, in particular those of Hawaiʻi, Guam and other Pacific Islands; (2) Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations; (3) Significant changes to the size, structure, powers and operations of the federal government, the effects of any prolonged shutdown of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition; (4) A sustained period of high inflation could pose a risk to local economies and the financial performance of the Bank; (5) Climate change and the governmental responses to it could have a material adverse impact on the Bank and its customers; (6) Disruptions, instability and failures in the banking industry may negatively impact us; (7) Any reduction in defense spending by the federal government in the state of Hawaiʻi could adversely impact the economy in Hawaiʻi and the Pacific Islands; (8) Changes in interest rates could adversely impact our results of operations and capital; (9) Our allowance for credit losses may prove to be insufficient to absorb losses or appropriately reflect, at any given time, the inherent risk of loss in our loan portfolio; (10) Consumer protection initiatives and court decisions related to the foreclosure process affect our remedies as a creditor; (11) Changes in the capital markets could materially affect the level of assets under management and the demand for our other fee-based services; (12) The Parent’s liquidity is dependent on dividends from the Bank; (13) There can be no assurance that the Parent will continue to declare cash dividends; (14) Fiscal and monetary policy changes may significantly impact our profitability and liquidity; (15) Legislation and regulatory initiatives affecting the financial services industry, including new interpretations, restrictions and requirements, could detrimentally affect the Company’s business; (16) Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations; (17) A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third-party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation; (18) An interruption or breach in security of our information systems or those related to merchants and third-party vendors, including as a result of cyber-attacks, could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, or result in financial losses; (19) Our mortgage banking income may experience significant volatility; (20) Our mortgage loan servicing business may be impacted if we do not meet our obligations, or if servicing standards change; (21) Risks related to representation and warranty provisions may impact our mortgage loan servicing business; (22) Risks relating to residential mortgage loan servicing activities may adversely affect our results; (23) The requirement to record certain assets and liabilities at fair value may adversely affect our financial results (24) Natural disasters and adverse weather in Hawaiʻi and the Pacific Islands may negatively affect real estate property values and our operations (25) Competition may adversely affect our business; (26) Our future performance will depend on our ability to respond timely to technological change; (27) The development and use of AI present risks and challenges that may adversely impact our business; (28) Negative public opinion could damage our reputation and adversely impact our earnings and liquidity (29) We are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; (30) Our performance depends on attracting and retaining key employees and skilled personnel to operate our business 39 Table of Contents effectively; (31) The soundness of other financial institutions may adversely impact our financial condition or results of operations; and (32) We have experienced increases in FDIC insurance assessments. The risks and uncertainties that could cause actual results to differ materially from our historical experience and our expectations and projections include but are not limited to those described in Item 1A. “Risk Factors,” Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in our most recent Annual Report on Form 10-K and in subsequent SEC filings. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws. Investor Announcements Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated, and new information is posted. Critical Accounting Estimates Our Unaudited Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. Application of GAAP requires us to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting estimates are not considered by management to be critical accounting estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. In determining which accounting estimates are critical accounting estimates, we consider, among other things, whether the application of GAAP requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and whether it is likely that materially different results would be reported under different conditions or different assumptions. The accounting estimates that we believe are most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Estimates” in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes in the Company’s application of critical accounting estimates since December 31, 2025. Overview We are a regional financial services company serving businesses, consumers, and governments in Hawai‘i, Guam, and other Pacific Islands. Our principal operating subsidiary, the Bank, was founded in 1897. Our business strategy is to use our unique market knowledge, prudent management discipline and brand strength to deliver exceptional value to our stakeholders. Our business plan is balanced between growth and risk management while maintaining flexibility to adjust to economic changes. We will continue to focus on providing customers with best-in-class service and an innovative mix of products and services. We will also remain focused on delivering strong financial results while maintaining prudent risk and capital management strategies and affirming our commitment to support our local communities. Hawai‘i Economy As of March 31, 2026, Hawai‘i’s economy continues to experience slow and uneven growth amid lingering uncertainty. Tourism conditions have stabilized but remain soft, with visitor volumes flat overall as continued weakness in most international markets offsets a modest recovery from Japan. Visitor spending has been supported by higher per‑visitor expenditures, particularly from U.S. mainland travelers, even as arrivals lag. Construction continues to provide a key source of stability, driven by elevated federal and military infrastructure projects and Maui rebuilding activity, although growth is expected to slow from recent highs. Labor market conditions have improved modestly following federal workforce reductions, and Hawai‘i’s unemployment rate remains historically low at 2.6% in January 2026, well below the national level of 4.3%. Inflationary pressures persist as the pass‑through effect of tariffs and tariff uncertainty, as well as the impact of recent military conflict on gasoline and electricity, continues to affect consumer prices. Recent Kona low storm events have also resulted in localized economic stress, with related impacts still evolving. Hawai‘i’s economy is expected to expand at a modest pace in 2026, constrained by ongoing federal policy uncertainty and a gradual recovery in tourism, but with 40 Table of Contents uncertainty due to the impact on travel of higher jet fuel prices and other increased travel costs and potential erosion of consumer confidence negatively impacting middle-class tourism demand. For t [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following MD&A is intended to help the reader understand the Company and its operations and is focused on our fiscal 2025 and 2024 financial results, including comparisons of year-to-year performance between these years. Discussion and analysis of our 2023 fiscal year, as well as the year-to-year comparison between fiscal 2024 and 2023, are included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 4, 2025. Forward-Looking Statements This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Given these risks and uncertainties, you should not place undue reliance on any forward-looking statement as a prediction of our actual results. 24 Table of Contents Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate, and actual results may differ materially from those projected because of a variety of risks and uncertainties, including, but not limited to: (1) Our business is sensitive to regional business and economic conditions, in particular those of Hawaiʻi, Guam and other Pacific Islands; (2) Our loan portfolio is largely secured by real estate, and a downturn in the real estate market may adversely affect our results of operations; (3) Significant changes to the size, structure, powers and operations of the federal government, the effects of any prolonged shutdown of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition; (4) A sustained period of high inflation could pose a risk to local economies and the financial performance of the Bank; (5) Climate change and the governmental responses to it could have a material adverse impact on the Bank and its customers; (6) Disruptions, instability and failures in the banking industry may negatively impact us; (7) Any reduction in defense spending by the federal government in the state of Hawaiʻi could adversely impact the economy in Hawaiʻi and the Pacific Islands; (8) Changes in interest rates could adversely impact our results of operations and capital; (9) Our allowance for credit losses may prove to be insufficient to absorb losses or appropriately reflect, at any given time, the inherent risk of loss in our loan portfolio; (10) Consumer protection initiatives and court decisions related to the foreclosure process affect our remedies as a creditor; (11) Changes in the capital markets could materially affect the level of assets under management and the demand for our other fee-based services; (12) The Parent’s liquidity is dependent on dividends from the Bank; (13) There can be no assurance that the Parent will continue to declare cash dividends; (14) Fiscal and monetary policy changes may significantly impact our profitability and liquidity; (15) Legislation and regulatory initiatives affecting the financial services industry, including new interpretations, restrictions and requirements, could detrimentally affect the Company’s business; (16) Changes in income tax laws and interpretations, or in accounting standards, could materially affect our financial condition or results of operations; (17) A failure in or breach of our operational systems, information systems, or infrastructure, or those of our third-party vendors and other service providers, may result in financial losses, loss of customers, or damage to our reputation; (18) An interruption or breach in security of our information systems or those related to merchants and third-party vendors, including as a result of cyber-attacks, could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, or result in financial losses; (19) Our mortgage banking income may experience significant volatility; (20) Our mortgage loan servicing business may be impacted if we do not meet our obligations, or if servicing standards change; (21) Risks related to representation and warranty provisions may impact our mortgage loan servicing business; (22) Risks relating to residential mortgage loan servicing activities may adversely affect our results; (23) The requirement to record certain assets and liabilities at fair value may adversely affect our financial results (24) Natural disasters and adverse weather in Hawaiʻi and the Pacific Islands may negatively affect real estate property values and our operations (25) Competition may adversely affect our business; (26) Our future performance will depend on our ability to respond timely to technological change; (27) The development and use of AI present risks and challenges that may adversely impact our business; (28) Negative public opinion could damage our reputation and adversely impact our earnings and liquidity (29) We are subject to certain litigation, and our expenses related to this litigation may adversely affect our results; (30) Our performance depends on attracting and retaining key employees and skilled personnel to operate our business effectively; (31) The soundness of other financial institutions may adversely impact our financial condition or results of operations; and (32) We have experienced increases in FDIC insurance assessments. The risks and uncertainties that could cause actual results to differ materially from our historical experience and our expectations and projections include but are not limited to those described in Item 1A. “Risk Factors,” Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this Annual Report on Form 10-K and in subsequent SEC filings. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws. Critical Accounting Estimates Our Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. The most significant accounting policies we follow are presented in Note 1 in Item 8. “Notes to Consolidated Financial Statements.” Application of GAAP requires us to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting estimates are not considered by management to be critical accounting estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. In determining which accounting estimates are critical accounting estimates we consider, among other things, whether the 25 Table of Contents application of GAAP requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and whether it is likely that materially different amounts would be reported under different conditions or using different assumptions. The accounting estimates that we believe to be most critical in preparing our Consolidated Financial Statements are those that are related to the determination of the reserve for credit losses, fair value estimates, and income taxes. Additional information is presented in Note 1 in Item 8. “Notes to Consolidated Financial Statements.” Reserve for Credit Losses A consequence of lending activities is that we may incur credit losses. The amount of such losses will vary depending upon the risk characteristics of the loan and lease portfolio as affected by economic conditions. The reserve for credit losses consists of the allowance for credit losses (the “Allowance”) and the reserve for unfunded commitments (the “Unfunded Reserve”). Accounting estimates related to the reserve for credit losses are considered to be critical as these estimates involve considerable subjective judgment and estimation by management. These estimates are in accordance with Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) Financial Instruments - Credit Losses. In the case of loans and leases, the Allowance is a contra-asset valuation account, calculated in accordance with ASC 326, that is deducted from the amortized cost basis of loans and leases to present the net amount expected to be collected. In the case of off-balance-sheet credit exposures, the Unfunded Reserve is a liability account, calculated in accordance with ASC 326, reported as a component of other liabilities in our consolidated statements of condition. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. These adjustments can include accounting for new or discontinued products, changes in our portfolio composition, delinquency trends, and with forecasted economic conditions including but not limited to unemployment, real estate market conditions (e.g. prices, sales activity and inventory), visitor arrivals, and the uncertainty of other events (local, national and global). The Unfunded Reserve represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. The Unfunded Reserve is determined by estimating future draws and applying the expected loss rates on those draws. However, a liability is not recognized for commitments unconditionally cancelable by the Company. The historical loss experience for the commercial portfolio segment is primarily determined by using a Cohort method. This method pools loans and leases into groups (“cohorts”) sharing similar risk characteristics based on product and risk ratings, and tracks each cohort’s historical net charge-offs to calculate a historical loss rate. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to current loan balances to arrive at the quantitative baseline portion of the Allowance for most of the commercial portfolio segment. The historical loss experience for the consumer portfolio segment is primarily determined by using a Vintage method. This method measures historical loss behavior in the form of a historical loss rate for homogenous loan pools that originated in the same period, known as a vintage. The historical loss rates are then applied to origination loan balances by vintage to determine the quantitative baseline portion of the Allowance for most of the consumer portfolio segment. The homogenous loan pools are segmented according to similar risk characteristics (e.g., residential mortgage, home equity) and may be sub-segmented further based on historical loss behavior. For example, we sub-segment residential mortgages by geography and home equity by lien position. We also consider qualitative adjustments to the quantitative baseline such as the impact of current environmental factors at the reporting date that did not exist over the period from which historical experience was used. Relevant factors include, but are not limited to, concentrations of credit risk, such as geography, industry, real estate property type; and economic trends and conditions, such as Hawaiʻi unemployment, real estate prices and market conditions, and visitor arrivals. We also consider changes in underwriting standards, and levels and trends in delinquencies and criticized loans and leases. We also incorporate a reasonable and supportable (“R&S”) loss forecast period, which is currently one year, to account for the effect of forecasted economic conditions and other factors on the performance of the loan portfolios, which could differ from historical loss experience. We also perform asset quality reviews which include a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans and leases, and risk rating migration. The results of the asset quality review are used to consider qualitative adjustments to the quantitative baseline. After the one-year R&S loss 26 Table of Contents forecast period, this adjustment assumes an immediate reversion to historical loss rates for the remaining expected life of the loan. The company utilizes the University of Hawaiʻi Economic Research Organization (“UHERO”) macroeconomic forecast that is updated quarterly based on economic conditions and events. The forecast includes various economic variables for Hawaiʻi such as gross domestic product (“GDP”), unemployment rate, visitor arrivals, residential real estate market conditions, personal income, and inflation rate. We also utilize other forecast tools for broader U.S. economic variables such as interest rates, and apply any overlays to the R&S loss forecast as relevant. The reserve for credit losses is generally sensitive to economic conditions and assumptions given the impact for potential losses for the consumer portfolio and risk rating migration for the commercial portfolio. For the consumer portfolio, as an example, an increase in the forecasted Hawaiʻi unemployment rate could lead to an increase in the rate of delinquencies and consequently charge-offs for consumer borrowers. For the Allowance at December 31, 2025, a 25-basis point increase in the forecasted Hawaiʻi unemployment rates would have increased the qualitative component of the Allowance for consumer loans by an estimated $1.2 million. For the commercial portfolio, the impact of adverse changes in economic conditions on borrowers will vary, and generally evaluated on a case-by-case basis to include the borrower’s existing and expected financial capacity. Borrowers that would be most adversely impacted are identified as having the potential for migrating from a Pass to a Classified risk rating. For the Allowance at December 31, 2025, a 50-basis point increase in the percentage of commercial loans risk rated as Classified would increase the quantitative component of the Allowance for commercial loans by an estimated $2.1 million. This sensitivity analysis is hypothetical and provided only to indicate the potential impact changes in economic conditions and assumptions may have on the Allowance estimate. Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others. The Unfunded Reserve is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). To estimate future draws on unfunded balances, current utilization rates are compared to historical utilization rates. If current utilization rates are below historical utilization rates, the rate difference is applied to the committed balance to estimate the future draw. Expected loss rates are estimated using the loss rates calculated for the corresponding loan category in the Allowance. For the commercial portfolio, the historical loss rates were calculated utilizing the Cohort methodology, while the consumer portfolio utilized the Vintage methodology. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market inputs. For financial instruments that are traded actively and have quoted market prices or observable market inputs, there is minimal subjectivity involved in measuring fair value. However, when quoted market prices or observable market inputs are not fully available, significant management judgment may be necessary to estimate fair value. In developing our fair value measurements, we maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines Level 1 valuations as those based on quoted prices, unadjusted, for identical instruments traded in active markets. Level 2 valuations are those based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 valuations are based on model-based techniques that use at least one significant assumption not observable in the market, or significant management judgment or estimation, some of which may be internally developed. Financial assets that are recorded at fair value on a recurring basis include available-for-sale investment securities, loans held for sale, mortgage servicing rights, investments related to deferred compensation arrangements, and derivative financial instruments. As of December 31, 2025 and 2024, $3.6 billion or 15% and $2.9 billion or 12%, respectively, of our total assets consisted of financial assets recorded at fair value on a recurring basis and most of these financial assets consisted of available-for-sale investment securities measured using information from a third-party pricing service. These investments in debt securities and mortgage-backed securities were all classified in either Levels 1 or 2 of the fair value hierarchy. Financial liabilities that are recorded at fair value on a recurring basis are comprised of derivative financial 27 Table of Contents instruments. As of December 31, 2025 and 2024, $107.2 million and $154.1 million, respectively, or less than 1% of our total liabilities consisted of financial liabilities recorded at fair value on a recurring basis. As of December 31, 2025 and 2024, Level 3 financial assets recorded at fair value on a recurring basis were $0.6 million and $0.7 million, respectively, or less than 1% of our total assets, and were comprised primarily of mortgage servicing rights and derivative financial instruments. As of December 31, 2025 and 2024, there were no Level 3 financial liabilities recorded at fair value on a recurring basis. We also use third-party pricing services to assist our management in determining the value of securities. Our third-party pricing service makes no representations or warranties that the pricing data provided to us is complete or free from errors, omissions, or defects. As a result, we have processes in place to monitor and periodically review the information provided to us by our third-party pricing service such as: 1) Our third-party pricing service provides us with documentation by asset class of inputs and methodologies used to value securities. We review this documentation to evaluate the inputs and valuation methodologies used to place securities into the appropriate level of the fair value hierarchy. This documentation is periodically updated by our third-party pricing service. Accordingly, transfers of securities within the fair value hierarchy are made if deemed necessary. 2) On a quarterly basis, management also selects a sample of securities priced by the Company’s third-party pricing service and reviews the significant assumptions and valuation methodologies used by the pricing service with respect to those securities. The information provided is comprised of market reference data, which may include reported trades; bids, offers, or broker-dealer dealer quotes; benchmark yields and spreads; as well as other reference data as appropriate. Periodically, based on these reviews, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. 3) On a quarterly basis, management reviews the pricing information received from our third-party pricing service. This review process includes a comparison to a second source. 4) Our third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, we will challenge the quoted prices provided by our third-party pricing service. Our third-party pricing service will review the inputs to the evaluation in light of the new market data presented by us. Our third-party pricing service may then affirm the original quoted price or may update the evaluation on a going forward basis. Generally, we do not adjust the price from the third-party service provider. 5) On an annual basis, we obtain and review the third party’s most recently issued Service Organization Controls report related to controls placed in operation and tests of operating effectiveness, to update our understanding of the third-party pricing service’s control environment. See Note 20 in Item 8. “Notes to Consolidated Financial Statements” for more information on our fair value measurements. Income Taxes We determine our liabilities for income taxes based on current tax regulations and interpretations in tax jurisdictions where our income is subject to taxation. Currently, we file tax returns for federal, five state and local domestic jurisdictions, and three foreign jurisdictions. In estimating income taxes payable or receivable, we assess the relative merits and risks of the appropriate tax treatment considering statutory, judicial, and regulatory guidance in the context of each tax position. Accordingly, previously estimated liabilities are regularly reevaluated and adjusted through the provision for income taxes. Changes in the estimate of income taxes payable or receivable occur periodically due to changes in tax rates, interpretations of tax law, the status of examinations being conducted by various taxing authorities, and newly enacted statutory, judicial and regulatory guidance that impact the relative merits and risks of each tax position. These changes, when they occur, may affect the provision for income taxes as well as current and deferred income taxes, and may be significant to our consolidated statements of income and condition. Management’s determination of the realization of net deferred tax assets is based upon management’s judgment of various future events and uncertainties, including the timing, character and amount of future income, as well as the implementation of various tax planning strategies to maximize realization of the deferred tax assets. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. As of December 31, 2025 and 2024, we carried a valuation allowance of $13.3 million and $9.7 million, respectively, related to our deferred tax assets established in connection with our low-income housing investments. We are also required to record a liability, referred to as an unrecognized tax benefit (“UTB”), for the entire amount of benefit taken in a prior or future income tax return when we determine that a tax position has a less than 50% likelihood of being accepted by the taxing authority. As of December 31, 2025 and 2024, our liabilities for UTBs were $3.5 million and $5.3 million, respectively. 28 Table of Contents Overview We are a regional financial services company serving businesses, consumers, and governments in Hawaiʻi, Guam, and other Pacific Islands. Our principal operating subsidiary, the Bank, was founded in 1897. Our business strategy is to use our unique market knowledge, prudent management discipline and brand strength to deliver exceptional value to our stakeholders. Our business plan is balanced between growth and risk management while maintaining flexibility to adjust to economic changes. We will continue to focus on providing customers with best-in-class service and an innovative mix of products and services. We will also remain focused on continuing to deliver strong financial results while maintaining prudent risk and capital management strategies as well as our commitment to support our local communities. Hawaiʻi Economy As of December 31, 2025, Hawai‘i’s economy faces a challenging environment though conditions have been less severe than earlier anticipated. Tourism continues to soften, with declines in the U.S. mainland market and ongoing weakness in international arrivals, despite modest gains from Japan and Maui’s gradual recovery. Construction remains a key source of stability, supported by major federal contracts and infrastructure projects helping to offset weakness in other sectors. The recent increase in the state minimum wage has boosted incomes for lower-wage workers, however, inflationary pressures continue to build as tariff costs pass through to consumer prices. Federal employment reductions and the 2025 government shutdown have added strain, yet Hawai‘i’s unemployment rate remains low relative to national levels. Hawai‘i’s unemployment rate was 2.2% in December 2025, which was below the U.S. unemployment rate of 4.4%. The median price of single-family home and condominium sales on Oahu increased by 3.5% and decreased by 1.5%, respectively, in 2025 compared to the prior year. The volume of single-family homes sales on Oahu increased 3.5% and condominium sales decreased 1.1% in 2025 compared to the prior year. Inventory of single-family homes and condominiums on Oahu was 2.6 months and 5.9 months, respectively, for December 2025. Earnings Summary Net income for 2025 was $205.9 million, an increase of $55.9 million, or 37.3%, compared to the prior year. Diluted earnings per common share were $4.63 in 2025, an increase of $1.17, or 33.8%, compared to the prior year. Our return on average assets was 0.87% in 2025, an increase of 23 basis points from 2024, and our return on average shareholders’ equity was 11.86% in 2025, compared to 9.78% in the prior year. •The return on average common equity for 2025 was 13.29% compared to 10.85% for the prior year. •Net interest income was $537.5 million in 2025, an increase of $71.0 million compared to the prior year. •Net interest margin was 2.45% in 2025, an increase of 29 basis points from the prior year. •Noninterest income was $179.1 million in 2025, an increase of 3.8% from the prior year, which included an $18.1 million gain related to the sale of our merchant services portfolio partially offset by a $16.8 million loss on the sale of investments in connection with the repositioning of our investment securities portfolio. •Noninterest expense was $443.1 million in 2025, an increase of 3.0% compared to the prior year. •The effective tax rate for 2025 was 21.41% compared with 24.19% for the prior year. •Total non-performing assets were $14.2 million as of December 31, 2025, a decrease of $5.1 million from the prior year. The ratio of non-performing assets to total loans and leases and foreclosed real estate was 0.10% at December 31, 2025, a decrease of 4 basis points from the prior year. •Net loan and lease charge-offs in 2025 were $13.7 million or 10 basis points of total average loans and leases outstanding. Net loan and lease charge-offs in 2025 were comprised of charge-offs of $19.0 million partially offset by recoveries of $5.3 million. Compared to 2024, net loan and lease charge-offs increased by $0.8 million or 1 basis point on total average loans and leases outstanding. •The allowance for credit losses on loans and leases was $146.8 million as of December 31, 2025, an increase of $1.8 million from the prior year. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at December 31, 2025, down 2 basis points from the prior year. 29 Table of Contents •Total assets were $24.2 billion as of December 31, 2025, an increase of 2.4% from the prior year. •The investment securities portfolio was $7.8 billion as of December 31, 2025, an increase of $0.4 billion or 6.1% from the prior year. The portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. Floating rate securities represented 18.1% of the investment securities portfolio as of December 31, 2025, compared to 16.5% as of December 31, 2024. •Total loans and leases were $14.1 billion as of both December 31, 2025 and 2024. •Total deposits were $21.2 billion as of December 31, 2025, an increase of 2.7% from the prior year. •Total shareholders’ equity was $1.9 billion as of December 31, 2025, an increase of 11.0% from the prior year. •During 2025, we repurchased 76,547 shares of common stock at a total cost of $5.0 million under the share repurchase program. Total remaining buyback authority under the share repurchase program was $121.0 million as of December 31, 2025. •We maintained a quarterly dividend of $0.70 per common share throughout 2025 and 2024. 30 Table of Contents Analysis of Consolidated Statements of Income Average balances, related income and expenses, and resulting yields and rates, on a taxable-equivalent basis, are presented in Table 1. An analysis of the change in net interest income, on a taxable-equivalent basis, is presented in Table 2. Average Balances and Interest Rates – Taxable-Equivalent Basis 1 Table 1 2025 2024 (dollars in millions) Average Balance Income/Expense 2 Yield/Rate Average Balance Income/Expense 2 Yield/Rate Earning Assets Cash and Cash Equivalents $ 551.4  $ 23.4  4.24  % $ 594.1  $ 30.7  5.17  % Investment Securities Available-for-Sale Taxable 3,076.5  112.7  3.66  2,433.8  89.3  3.67  Non-Taxable 28.3  1.7  5.83  9.2  0.6  6.05  Held-to-Maturity Taxable 4,409.2  77.8  1.77  4,783.5  84.9  1.78  Non-Taxable 33.9  0.7  2.10  34.5  0.7  2.10  Total Investment Securities 7,547.9  192.9  2.56  7,261.0  175.5  2.42  Loans Held for Sale 2.1  0.2  5.78  2.9  0.2  6.05  Loans and Leases 3 Commercial Mortgage 4,045.5  215.7  5.33  3,763.6  205.9  5.47  Commercial and Industrial 1,640.2  82.5  5.03  1,679.8  89.2  5.31  Construction 341.1  24.6  7.21  333.4  25.6  7.66  Commercial Lease Financing 91.8  3.7  4.05  65.1  1.7  2.68  Residential Mortgage 4,650.5  184.6  3.97  4,614.8  182.4  3.95  Home Equity 2,136.8  94.0  4.40  2,217.5  87.8  3.96  Automobile 720.4  37.9  5.26  803.6  37.0  4.61  Other 400.1  30.2  7.55  391.1  27.4  7.01  Total Loans and Leases 14,026.4  673.2  4.80  13,868.9  657.0  4.74  Other 69.5  4.5  6.47  63.2  4.2  6.66  Total Earning Assets 22,197.3  894.2  4.03  21,790.1  867.6  3.98  Non-Earning Assets 1,601.2  1,572.6  Total Assets $ 23,798.5  $ 23,362.7  Interest-Bearing Liabilities Interest-Bearing Deposits Demand $ 3,739.3  $ 29.7  0.79  % $ 3,745.9  $ 33.2  0.89  % Savings 8,674.1  190.2  2.19  8,362.3  209.7  2.51  Time 3,029.6  104.3  3.44  3,042.3  125.9  4.14  Total Interest-Bearing Deposits 15,443.0  324.2  2.10  15,150.5  368.8  2.43  Securities Sold Under Agreements to Repurchase 56.6  2.2  3.94  118.2  4.6  3.90  Other Debt 563.2  23.9  4.23  560.4  23.8  4.25  Total Interest-Bearing Liabilities 16,062.8  350.3  2.18  15,829.1  397.2  2.51  Net Interest Income $ 543.9  $ 470.4  Interest Rate Spread 1.85  1.47  Net Interest Margin 2.45  2.16  Noninterest-Bearing Demand Deposits 5,412.9  5,385.8  Other Liabilities 586.7  614.6  Shareholders’ Equity 1,736.1  1,533.2  Total Liabilities and Shareholders’ Equity $ 23,798.5  $ 23,362.7  1.Due to rounding, the amounts presented in this schedule may not tie to other amounts presented elsewhere in this report. 2.Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21% of $6.4 million and $3.8 million for the years ended December 31, 2025, and 2024, respectively. 3.Non-performing loans and leases are included in the respective average loan and lease balances. 31 Table of Contents Analysis of Change in Net Interest Income – Taxable-Equivalent Basis Table 2 Year Ended December 31, 2025 Compared to 2024 (dollars in millions) Volume 1 Rate 1 Total Change in Interest Income: Cash and Cash Equivalents $ (2.1) $ (5.2) $ (7.3) Investment Securities Available-for-Sale Taxable 23.6  (0.1) 23.5  Non-Taxable 1.1  0.0  1.1  Held-to-Maturity Taxable (6.6) (0.5) (7.1) Non-Taxable (0.1) —  (0.1) Total Investment Securities 18.0  (0.6) 17.4  Loans Held for Sale (0.1) 0.0  (0.1) Loans and Leases Commercial Mortgage 15.1  (5.3) 9.8  Commercial and Industrial (2.1) (4.6) (6.7) Construction 0.6  (1.6) (1.0) Commercial Lease Financing 1.6  0.4  2.0  Residential Mortgage 1.4  0.9  2.3  Home Equity (3.3) 9.5  6.2  Automobile (4.0) 4.9  0.9  Other 0.6  2.2  2.8  Total Loans and Leases 9.9  6.4  16.3  Other 0.4  (0.1) 0.3  Total Change in Interest Income 26.1  0.5  26.6  Change in Interest Expense: Interest-Bearing Deposits Demand (0.1) (3.4) (3.5) Savings 7.6  (27.0) (19.4) Time (0.5) (21.1) (21.6) Total Interest-Bearing Deposits 7.0  (51.5) (44.5) Securities Sold Under Agreements to Repurchase (2.4) 0.0  (2.4) Other Debt 0.1  (0.1) 0.0  Total Change in Interest Expense 4.7  (51.6) (46.9) Change in Net Interest Income $ 21.4  $ 52.1  $ 73.5  1.The change in interest income or expense due to both rate and volume has been allocated between the factors in proportion to the relationship of the absolute dollar amounts of the change in each. Net Interest Income Net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities. Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets. The average balances of our earning assets increased by $407.2 million or 2% in 2025 compared to the prior year, primarily due to increases in the average balances of available-for-sale (“AFS”) investment securities and commercial mortgage loans. Yields on our investment securities portfolio increased by 14 basis points, primarily due to the 32 Table of Contents amortization of lower yielding investments being reinvested into new investments at higher interest rates. This increase was partially offset by lower income earned from interest rate swaps that hedge a portion of our AFS securities portfolio. Yields on our loan and lease portfolio increased by 6 basis points due to higher rates on home equity lines and automobile loans originated, partially offset by the payoffs of higher yielding commercial mortgage and commercial and industrial loans, and the impact of lower rates on our floating rate commercial loans. The average balances of our interest-bearing liabilities increased by $233.7 million or 1% in 2025 compared to the prior year due to an increase in savings deposits. As compared to the same period last year, the cost of our interest-bearing liabilities decreased by 33 basis points during the year ended December 31, 2025, primarily due to a decrease in the prevailing interest rate environment, which was driven by 175 basis points of interest rate cuts by the Federal Open Market Committee from September 2024 through December 2025. Noninterest Income Table 3 presents the major components of noninterest income for 2025 and 2024. Noninterest Income Table 3 Year Ended December 31, (dollars in thousands) 2025 2024 Dollar Change Percent Change Fees, Exchange, and Other Service Charges $ 56,337  $ 57,236  $ (899) (1.6) % Trust and Asset Management 49,319  47,485  1,834  3.9  Service Charges on Deposit Accounts 33,582  32,430  1,152  3.6  Bank-Owned Life Insurance 14,764  13,568  1,196  8.8  Annuity and Insurance 5,211  5,436  (225) (4.1) Mortgage Banking 3,660  4,109  (449) (10.9) Investment Securities Losses, Net (23,395) (7,507) (15,888) (211.6) Other Income 39,612  19,772  19,840  100.3  Total Noninterest Income $ 179,090  $ 172,529  $ 6,561  3.8  % Fees, exchange, and other service charges decreased by $0.9 million or 1.6% in 2025 compared to the prior year, primarily due to the sale of our merchant services portfolio in October 2025 partially offset by an increase in fees generated from our commercial mortgage portfolio. The noninterest income generated from our merchant services portfolio during the years ended December 31, 2025 and 2024 was $8.7 million and $11.3 million, respectively. Investment securities losses increased by $15.9 million or 211.6% in 2025 compared to the prior year, primarily due to a $16.8 million realized loss on the sale of certain securities in connection with the repositioning of $208.4 million AFS securities during the quarter ended December 31, 2025. Other income increased by $19.8 million or 100.3% in 2025 compared to the prior year. The increase was primarily due to a one-time gain of $18.1 million as we sold the economic interests of our merchant services portfolio during the quarter ended December 31, 2025. 33 Table of Contents Noninterest Expense Table 4 presents the major components of noninterest expense for 2025 and 2024. Noninterest Expense Table 4 Year Ended December 31, (dollars in thousands) 2025 2024 Dollar Change Percent Change Salaries $ 158,229  $ 154,538  $ 3,691  2.4  % Incentive Compensation 19,455  15,708  3,747  23.9  Retirement and Other Benefits 17,228  15,408  1,820  11.8  Share-Based Compensation 15,527  13,667  1,860  13.6  Medical, Dental, and Life Insurance 15,971  14,900  1,071  7.2  Payroll Taxes 13,502  13,232  270  2.0  Separation Expense 3,688  1,536  2,152  140.1  Commission Expense 5,172  3,575  1,597  44.7  Total Salaries and Benefits 248,772  232,564  16,208  7.0  Net Occupancy 42,019  42,084  (65) (0.2) Net Equipment 40,501  40,886  (385) (0.9) Data Processing 21,985  19,540  2,445  12.5  Professional Fees 16,231  19,319  (3,088) (16.0) FDIC Insurance 11,168  17,850  (6,682) (37.4) Other Expense: Advertising 8,502  7,842  660  8.4  Merchant Transaction and Card Processing Fees 5,297  6,772  (1,475) (21.8) Delivery and Postage Services 6,782  6,865  (83) (1.2) Mileage Program Travel 4,197  4,268  (71) (1.7) Broker’s Charges 2,420  2,002  418  20.9  Other 35,273  30,116  5,157  17.1  Total Other Expense 62,471  57,865  4,606  8.0  Total Noninterest Expense $ 443,147  $ 430,108  $ 33,853  7.9  % Total salaries and benefits expense increased by $16.2 million or 7.0% in 2025 compared to the prior year primarily due to increases in base salaries, which is generally attributable to increases in merit, incentive compensation attributed to our improved financial performance during the year, and separation expense. Data processing expense increased by $2.4 million or 12.5% in 2025 compared to the prior year primarily due to an increase in data services fees related to the additional costs incurred in connection with outsourcing. Professional fees expense decreased by $3.1 million or 16.0% in 2025 compared to the prior year primarily due to a decrease in consulting and outsourcing costs incurred. FDIC insurance expense decreased by $6.7 million or 37.4% in 2025 compared to the prior year, primarily due to a partial reduction of the FDIC special assessment in 2025. Total other expense increased by $4.6 million or 8.0% in 2025 compared to the prior year primarily due to a $1.1 million donation to the Bank of Hawaii Foundation, and an increase in pension and post-retirement expenses, telephone charges, travel expenses, and broker’s charges, partially offset by a decrease in merchant transactions and card processing fees. 34 Table of Contents Income Taxes Table 5 presents our provision for income taxes and effective tax rates for 2025 and 2024: Provision for Income Taxes and Effective Tax Rates Table 5 (dollars in thousands) Provision for Income Taxes Effective Tax Rates 2025 $ 56,080  21.41  % 2024 $ 47,857  24.19  % The provision for income taxes was $56.1 million in 2025, an increase of $8.2 million compared to the prior year. The effective tax rate for 2025 was 21.41%, a decrease from 24.19% for the prior year. The lower effective tax rate in 2025 compared to the prior year was primarily due to a decrease in nondeductible compensation, and increases in tax benefits related to low-income housing investments, as well as a change in discrete items. In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, permanently extending several tax provisions originally introduced under the 2017 Tax Cuts and Jobs Act that were set to expire at the end of 2025. The OBBBA also introduced changes to certain U.S. corporate tax rules, most of which take effect in 2026. We have evaluated the impact of the OBBBA and do not expect any material changes to our effective tax rate or results of operations. Analysis of Business Segments Our business segments are Consumer Banking, Commercial Banking, and Treasury and Other. Table 6 summarizes net income from our business segments for 2025 and 2024. Additional information about segment performance is presented in Note 12 in Item 8. “Notes to Consolidated Financial Statements.” Business Segment Net Income Table 6 Year Ended December 31, (dollars in thousands) 2025 2024 Dollar Change Percent Change Consumer Banking $ 118,400  $ 129,502  $ (11,102) (9) % Commercial Banking 142,120  119,423  22,697  19  Total 260,520  248,925  11,595  5  Treasury and Other (54,618) (98,931) 44,313  45  Consolidated Total $ 205,902  $ 149,994  $ 55,908  37  % Consumer Banking Net income decreased by $11.1 million or 9% in 2025 compared to the prior year, primarily due to an increase in noninterest expense and a decrease in net interest income. This was partially offset by an increase in noninterest income. Noninterest expense increased by $9.7 million or 3%, primarily due to higher salaries and benefits expenses, mobile and online banking platform costs, operational losses, card production costs, temporary service expenses, and allocated administrative and support unit costs. Net interest income decreased by $7.2 million or 2%, primarily due to lower deposit spreads on higher deposit balances. Noninterest income increased by $1.4 million or 1%, primarily due to increases in trust and asset management income, monthly service fees, overdraft fees, and credit card commissions, partially offset by a decrease in mortgage banking income. Commercial Banking Net income increased by $22.7 million or 19% in 2025 compared to the prior year, primarily due to an increase in net interest income and noninterest income, and a decrease in noninterest expense. Net interest income increased by $13.6 million or 6%, primarily due to an increase in loan balances, primarily in commercial mortgages, as well as a net increase in allocated interest income related to increases in balances and spreads on interest-bearing and savings deposits, partially offset by a decline in noninterest-bearing deposit balances and allocated interest income. Noninterest income increased by $18.3 million or 64%, primarily due to a one-time payment on the sale of the Bank’s merchant services portfolio in the fourth quarter, higher customer derivative program revenue, loan and commitment fees, analyzed deposit account fees and a one-time gain on sale of leased assets, partially offset by a reduction in merchant revenues and terminal rentals due to the sale of the portfolio. Noninterest expense decreased by $0.6 million or 1%, primarily due to lower merchant transaction 35 Table of Contents processing fees, salaries and benefits, occupancy and equipment expenses, and fewer operational losses in the period, partially offset by increases in data processing, professional services, and allocated administrative, support unit and branch expenses. Treasury and Other Net loss decreased by $44.3 million or 45% in 2025 compared to the prior year, primarily due to a decrease in net interest expense, partially offset by a decrease in noninterest income and an increase in noninterest expense. Net interest expense decreased by $64.5 million or 97%, primarily due to lower funding costs and an increase in interest income from higher asset yields. Noninterest income decreased by $13.1 million or 143%, primarily due to a loss on sale of $208.4 million of investment securities in conjunction with the fourth quarter portfolio repositioning transaction, partially offset by increases in other income and bank-owned life insurance income. The provision for credit losses and income taxes in this business segment represents the residual amounts to arrive at the total amount for the Company. Analysis of Consolidated Statements of Condition Cash and Cash Equivalents Cash and cash equivalents were $946.5 million as of December 31, 2025, an increase of $182.9 million or 24.0% from the prior year. The increase was primarily due to a net increase in deposits partially offset by an increase in our investment portfolio. Investment Securities The carrying value of our investment securities portfolio was $7.8 billion and $7.3 billion as of December 31, 2025 and 2024, respectively. The increase was primarily due to the purchase of $1.3 billion in available-for-sale investment securities during the year ended December 31, 2025, of which $392.9 million were floating rate securities. The increase was partially offset by the amortization of existing securities. 36 Table of Contents Table 7 presents the maturity distribution at amortized cost, weighted-average yield to maturity, and fair value of our investment securities. Maturities and Average Yield on Securities Table 7 (dollars in millions) 1 Year or Less Weighted Average Yield After 1 Year - 5 Years Weighted Average Yield After 5 Years - 10 Years Weighted Average Yield Over 10 Years Weighted Average Yield Total Weighted Average Yield Fair Value As of December 31, 2025 Available-for-Sale 1 Debt Securities Issued by the U.S. Treasury and Government Agencies $ 70.4  1.1  % $ 77.8  2.9  % $ 73.2  4.8  % $ —  —  % $ 221.3  2.9  % $ 218.3  Debt Securities Issued by States and Political Subdivisions 0.3  2.1  47.3  2.0  24.7  2.1  —  —  72.3  2.0  66.3  Debt Securities Issued by U.S. Government-Sponsored Enterprises 0.8  2.1  —  —  —  —  —  —  0.8  2.1  0.8  Debt Securities Issued by Corporations 60.0  3.8  601.6  4.0  90.8  3.0  —  —  752.4  3.8  735.6  Collateralized Mortgage Obligations 2: Residential - U.S. Government- Sponsored Enterprises 0.8  1.1  636.5  4.7  927.1  3.3  —  —  1,564.4  3.9  1,488.5  Commercial - U.S. Government- Sponsored Enterprises —  —  180.9  4.5  38.9  2.3  129.8  3.2  349.6  3.8  329.8  Commercial - Non-Agency —  —  60.6  5.4  —  —  —  —  60.6  5.4  60.6  Total Collateralized Mortgage Obligations 0.8  1.1  878.0  4.7  966.0  3.2  129.8  3.2  1,974.6  3.9  1,878.9  Mortgage-Backed Securities 2 Residential - U.S. Government- Sponsored Enterprises 5.1  1.4  182.4  1.4  447.9  4.5  —  —  635.4  3.6  610.8  Total Mortgage-Backed Securities 5.1  1.4  182.4  1.4  447.9  4.5  —  —  635.4  3.6  610.8  Total Available-for-Sale $ 137.4  2.3  % $ 1,787.1  4.0  % $ 1,602.6  3.6  % $ 129.8  5.0  % $ 3,656.8  3.7  % $ 3,510.7  Held-to-Maturity Debt Securities Issued by the U.S. Treasury and Government Agencies $ —  —  % $ 74.8  1.3  % $ 49.6  1.5  % $ —  —  % $ 124.5  1.4  % $ 115.8  Debt Securities Issued by Corporations —  —  —  —  10.2  1.6  —  —  10.2  1.6  8.7  Collateralized Mortgage Obligations 2: Residential - U.S. Government- Sponsored Enterprises 7.7  2.9  82.5  2.1  1,905.6  1.4  —  —  1,995.8  1.4  1,715.8  Commercial - U.S. Government- Sponsored Enterprises 1.7  2.7  86.0  1.4  141.8  1.7  177.5  1.4  407.0  1.5  328.9  Total Collateralized Mortgage Obligations 9.4  2.9  168.5  1.8  2,047.4  1.4  177.5  1.4  2,402.8  1.4  2,044.7  Mortgage-Backed Securities 2 Commercial - U.S. Government- Sponsored Enterprises —  6.7  87.4  2.7  1,610.8  2.1  —  —  1,698.2  2.2  1,474.5  Residential - U.S. Government- Sponsored Enterprises —  —  —  —  10.0  1.8  —  —  10.0  1.8  8.3  Total Mortgage-Backed Securities —  6.7  87.4  2.7  1,620.8  2.1  —  1,708.2  2.2  1,482.8  Total Held-to-Maturity $ 9.4  2.9  % $ 330.7  1.9  % $ 3,728.1  1.7  % $ 177.5  1.4  % $ 4,245.7  1.7  % $ 3,652.0  Total Investment Securities As of December 31, 2025 $ 146.8  $ 2,117.8  $ 5,330.6  $ 307.3  $ 7,902.5  $ 7,162.6  As of December 31, 2024 $ 62.3  $ 2,295.6  $ 5,177.2  $ 30.8  $ 7,565.9  $ 6,510.4  1Weighted-average yields on investment securities available-for-sale are based on amortized cost. 2Information for mortgage-backed securities, collateralized mortgage obligations, and small business administration securities reflect weighted average life, including anticipated future prepayments. We continually evaluate our investment securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and level of interest rate risk to which we are exposed. These evaluations may cause us to change the level of funds deployed into investment securities, change the composition of our investment securities portfolio, and change the proportion of investments made into the available-for-sale and held-to-maturity investment categories. Mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac continue to be the largest concentrations in the portfolio. As of December 31, 2025, the issuers of these securities carry credit ratings equivalent to those of the U.S. Government, reflecting the explicit and/or implicit guarantees provided, and have a long history of zero credit loss. 37 Table of Contents Gross unrealized gains in our investment securities portfolio were $12.0 million and $1.3 million as of December 31, 2025 and 2024, respectively. Gross unrealized losses in the investment securities portfolio were $751.9 million and $1.1 billion as of December 31, 2025 and 2024, respectively. The decrease in gross unrealized losses was primarily due to a decrease in prevailing interest rates year over year. In addition, the Company recognized $16.8 million of gross losses on sales of AFS securities during the fourth quarter of 2025 as part of a repositioning of the Company’s AFS securities portfolio. As of December 31, 2025, we had the intent and ability to hold these securities and do not expect to be required to sell them before recovering their amortized cost basis, which may occur at maturity. See Note 2 in Item 8. “Notes to Consolidated Financial Statements” for more information. The Company’s corporate debt securities as of December 31, 2025, had a fair value of $744.3 million. Of this total, $8.7 million was fully guaranteed by the U.S. government. Of the remaining $735.6 million of corporate bonds, all were credit-rated A- or better by at least one nationally recognized statistical rating organization. Loans and Leases Table 8 presents the composition of our loan and lease portfolio by major categories. Loans and Leases Table 8 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Commercial Commercial Mortgage $ 4,205,791  $ 4,020,622  $ 3,749,016  $ 3,725,542  $ 3,152,130  Commercial and Industrial 1,584,245  1,705,133  1,664,068  1,408,645  1,488,700  Construction 208,584  308,898  304,463  260,825  220,254  Lease Financing 88,303  90,756  59,939  69,491  105,108  Total Commercial 6,086,923  6,125,409  5,777,486  5,464,503 4,966,192 Consumer Residential Mortgage 4,775,502  4,628,283  4,684,171  4,653,072  4,309,602  Home Equity 2,114,809  2,165,514  2,264,827  2,225,950  1,836,588  Automobile 690,376  764,146  837,830  870,396  736,565  Other 414,440  392,628  400,712  432,499  410,129  Total Consumer 7,995,127  7,950,571  8,187,540  8,181,917  7,292,884  Total Loans and Leases $ 14,082,050  $ 14,075,980  $ 13,965,026  $ 13,646,420  $ 12,259,076  Commercial loans and leases were $6.1 billion as of December 31, 2025, a decrease of $38.5 million or 0.6% from the prior year, primarily due to our commercial and industrial and construction portfolios amortizing and paying down at a faster rate than new loan production. Consumer loans and leases were $8.0 billion as of December 31, 2025, an increase of $44.6 million or 0.6% from the prior year, primarily due to higher new loan originations within our residential mortgages. Loans and Leases - Commercial The commercial loan and lease portfolio is comprised of commercial mortgages, commercial and industrial loans, construction loans, and lease financing. Commercial mortgage and construction loans are offered to real estate investors, developers, and builders primarily domiciled in Hawaiʻi. Commercial mortgage loans are secured by first mortgages on commercial real estate at loan-to-value ratios generally not exceeding 75%. Commercial properties are well diversified among property types, with primary concentrations in multi-family, industrial, retail and lodging. The primary source of repayment for investor property is cash flow from the property and for owner-occupied property is the operating cash flow from the business. 38 Table of Contents Table 9 presents an additional breakdown of the Company’s commercial mortgage portfolio. Commercial Mortgage Breakdown Table 9 December 31, 2025 December 31, 2024 (dollars in thousands) Amount Percent of Total % Owner Occupied Amount Percent of Total % Owner Occupied Multi-family $ 1,203,151  29  % —  % $ 1,025,247  25  % —  % Industrial 776,260  18  38  724,645  18  42  Retail 696,492  17  3  704,780  18  3  Lodging 649,196  15  —  676,350  17  —  Office 336,144  8  22  371,474  9  20  Other 1 544,548  13  23  518,126  13  26  Total Commercial Mortgage $ 4,205,791  100  % 12  % $ 4,020,622  100  % 13  % 1.Amount includes unamortized loan origination fees. Commercial and industrial loans are made primarily to corporations, middle market, and small businesses for the purpose of financing equipment acquisitions, expansion, working capital, and other general business purposes. Construction loans are made for the purchase or construction of a property for which repayment will be generated by the property. We classify loans as construction until the completion of the construction phase. Following construction, if a loan is retained, the loan is reclassified to the commercial mortgage category. Lease financing consists of sales-type leases used by commercial customers to finance capital purchases. Although our primary market is Hawaiʻi, the commercial portfolio contains loans to some borrowers based on the U.S. Mainland, including some Shared National Credits, which have a business connection to Hawaiʻi or are associated with a Hawaiʻi customer relationship. Loans and Leases - Consumer The consumer loan and lease portfolio is comprised of residential mortgage loans, home equity lines and loans, indirect auto loans, and other consumer loans including direct installment loans and indirect auto leases. These products are generally offered in the geographic markets we serve. Our residential mortgage loan portfolio is primarily comprised of fixed-rate loans concentrated in Hawaiʻi. We also offer a variety of home equity lines and loans, which are primarily secured by first lien mortgages on residential property of the borrower. Automobile lending activities include loans and leases secured by new or used automobiles. We originate automobile loans and leases on an indirect basis through selected dealerships. Direct installment loans are generally unsecured and are primarily used for personal expenses or for debt consolidation. See Note 3 in Item 8. “Notes to Consolidated Financial Statements” and the “Corporate Risk Profile – Credit Risk” section of Item 7. MD&A for more information on our loan and lease portfolio. 39 Table of Contents Table 10 presents the geographic distribution of our loan and lease portfolio. Geographic Distribution of Loan and Lease Portfolio Table 10 (dollars in thousands) Hawai‘i U.S. Mainland 1 Guam Other Pacific Islands Total December 31, 2025 Commercial Commercial Mortgage $ 3,788,244 $ 244,812 $ 172,315 $ 420 $ 4,205,791 Commercial and Industrial 1,370,467 135,563 63,498 14,717 1,584,245 Construction 208,584 — — — 208,584 Lease Financing 88,027 — 276 — 88,303 Total Commercial 5,455,322 380,375 236,089 15,137 6,086,923 Consumer Residential Mortgage 4,699,089 5,388 70,767 258 4,775,502 Home Equity 2,070,246 37 44,526 — 2,114,809 Automobile 548,585 — 112,084 29,707 690,376 Other 358,190 — 54,030 2,220 414,440 Total Consumer 7,676,110 5,425 281,407 32,185 7,995,127 Total Loans and Leases $ 13,131,432 $ 385,800 $ 517,496 $ 47,322 $ 14,082,050 Percentage of Total Loans and Leases 93  % 3  % 4  % 0  % 100  % December 31, 2024 Commercial Commercial Mortgage $ 3,534,658 $ 297,758 $ 187,777 $ 429 $ 4,020,622 Commercial and Industrial 1,493,386 139,968 62,824 8,955 1,705,133 Construction 308,898 — — — 308,898 Lease Financing 90,260 — 496 — 90,756 Total Commercial 5,427,202 437,726 251,097 9,384 6,125,409 Consumer Residential Mortgage 4,553,553 5,469 68,932 329 4,628,283 Home Equity 2,119,548 41 45,925 — 2,165,514 Automobile 601,359 — 125,331 37,456 764,146 Other 336,718 — 47,279 8,631 392,628 Total Consumer 7,611,178 5,510 287,467 46,416 7,950,571 Total Loans and Leases $ 13,038,380 $ 443,236 $ 538,564 $ 55,800 $ 14,075,980 Percentage of Total Loans and Leases 93  % 3  % 4  % 0  % 100  % 1For secured loans and leases, classification as U.S. Mainland is made based on where the collateral is located. For unsecured loans and leases, classification as U.S. Mainland is made based on the location where the majority of the borrower’s business operations are conducted. Our commercial and consumer lending activities are concentrated primarily in Hawai‘i and the West Pacific. Our commercial loan and lease portfolio to borrowers based on the U.S. Mainland includes participation in shared national credits for customers whose operations and assets extend beyond Hawai‘i. 40 Table of Contents Table 11 presents a maturity distribution for selected loan categories. Maturities for Selected Loan Categories 1 Table 11 December 31, 2025 (dollars in thousands) Due in One Year or Less Due After One to Five Years Due After Five to Ten Years Due After Ten to Fifteen Years Due After Fifteen Years Total Variable Rate Loans 2 Fixed Rate Loans Commercial Commercial Mortgage $ 771,543  $ 1,558,569  $ 1,506,443  $ 183,123  $ 186,113  $ 4,205,791  $ 2,836,479  $ 1,369,312  Commercial and Industrial 298,962  478,569  398,585  166,334  241,795  1,584,245  1,171,971  412,274  Construction 91,375  16,393  39,834  —  60,982  208,584  168,538  40,046  Lease Financing 6,136  46,900  11,566  23,701  —  88,303  —  88,303  Total Commercial 1,168,016  2,100,431  1,956,428  373,158  488,890  6,086,923  4,176,988  1,909,935  Consumer Residential Mortgage 889  27,280  122,556  218,007  4,406,770  4,775,502  839,290  3,936,212  Home Equity 3,007  7,697  80,601  335,662  1,687,842  2,114,809  1,111,382  1,003,427  Automobile 12,503  468,069  209,804  —  —  690,376  —  690,376  Other 37,689  255,601  121,150  —  —  414,440  32,551  381,889  Total Consumer 54,088  758,647  534,111  553,669  6,094,612  7,995,127  1,983,223  6,011,904  Total Loans and Leases $ 1,222,104  $ 2,859,078  $ 2,490,539  $ 926,827  $ 6,583,502  $ 14,082,050  $ 6,160,211  $ 7,921,839  1.Based on contractual maturities. 2.Amount includes adjustable rate loans of $2.4 billion that are still in their fixed rate period. Goodwill Goodwill was $31.5 million as of December 31, 2025, and 2024. As of December 31, 2025, based on our qualitative assessment, there were no reporting units where we concluded that the fair value of a reporting unit was less than its carrying amount, including goodwill. See Note 1 in Item 8. “Notes to Consolidated Financial Statements” for more information on our goodwill impairment policy. Other Assets Other assets were $632.0 million as of December 31, 2025, a decrease of $104.9 million or 14% from the prior year. The fair value of derivative financial instruments decreased by $61.9 million or 38.3% due to changes in interest rates from December 2024 to December 2025, decreasing the valuation of customer swaps and fair value hedges. Deferred tax assets and tax receivable decreased by $34.1 million or 20% primarily due to temporary book-to-tax differences related to unrealized losses on investment securities. See Note 6 in Item 8. “Notes to Consolidated Financial Statements” for more information on the composition of our other assets. Deposits Table 12 presents the components of our deposits by major customer categories as of December 31, 2025, and 2024. Deposits Table 12 (dollars in thousands) December 31, 2025 December 31, 2024 Dollar Change Percent Change Consumer $ 10,466,617  $ 10,397,777  $ 68,840  0.7  % Commercial 8,597,265  8,299,590  297,675  3.6  Public and Other 2,124,613  1,935,670  188,943  9.8  Total Deposits $ 21,188,495  $ 20,633,037  $ 555,458  2.7  % Total deposits were $21.2 billion as of December 31, 2025, an increase of $555.5 million or 2.7% from the prior year. Consumer deposits increased by $68.8 million due to increases of $185.2 million in savings deposits and $47.2 million in noninterest-bearing deposits, partially offset by a decrease of $163.6 million in time deposits and interest-bearing demand deposits. Commercial deposits increased by $297.7 million primarily from an increase of $349.2 million in noninterest-bearing deposits, interest-bearing demand deposits, and time deposits, partially offset by a decrease of $51.5 million in savings. Public and other deposits increased by $188.9 million due to an increase of $242.5 million in savings and $158.6 41 Table of Contents million in interest-bearing demand deposits, partially offset by a decrease of $201.8 million in time deposits and $10.4 million in noninterest-bearing deposits. Table 13 presents the components of our savings deposits as of December 31, 2025, and 2024. Savings Deposits Table 13 (dollars in thousands) December 31, 2025 December 31, 2024 Dollar Change Percent Change Regular Savings $ 5,383,975  $ 4,934,869  $ 449,106  9.1  % Money Market 3,357,115  3,430,047  (72,932) (2.1) Total Savings Deposits $ 8,741,090  $ 8,364,916  $ 376,174  4.5  % The increase in Regular Savings was primarily due to increases in public deposits of $242.5 million, consumer deposits of $200.9 million, and commercial deposits of $5.7 million. The decrease in Money Market was primarily due to decreases in commercial deposits of $57.2 million and consumer deposits of $15.7 million. Table 14 presents the maturity distribution of the estimated uninsured time deposits as of December 31, 2025, and 2024. Maturity Distribution of Estimated Uninsured Time Deposits Table 14 (dollars in thousands) December 31, 2025 December 31, 2024 Remaining maturity: Three months or less $ 613,444  $ 635,812  After three through six months 396,599  365,354  After six through twelve months 320,938  524,286  After twelve months 86,151  102,795  Total $ 1,417,132  $ 1,628,247  Uninsured amounts are estimated based on the portion of account balances in excess of FDIC insurance limits. Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase were $50.0 million and $100.0 million as of December 31, 2025 and December 31, 2024, respectively. In February 2025, a private institution exercised its right to call on a repurchase agreement with a balance of $50.0 million, resulting in its termination. As of December 31, 2025, our remaining repurchase agreement was at a fixed interest rate of 3.89% with a remaining maturity of 3.9 years. Our repurchase agreement was accounted for as a collateralized financing arrangement (i.e., a secured borrowing) and not as a sale and subsequent repurchase of securities. Our remaining repurchase agreement with a private institution may be terminated at earlier specified dates by either the private institution or the Company. See Note 8 in Item 8. “Notes to Consolidated Statements” for more information. Other Debt Other debt was $558.2 million and $558.3 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, our available capacity under our line of credit with the FHLB was $2.1 billion. The FHLB borrowing capacity is secured by residential real estate loan collateral. 42 Table of Contents Pension and Postretirement Plan Obligations Retirement benefits payable was $20.1 million as of December 31, 2025, a decrease of $3.6 million from the prior year. Our pension and postretirement benefit obligations and net periodic benefit cost are actuarially determined based on a number of key assumptions, including the discount rate, the expected return on plan assets, and the health-care cost trend rate. The accounting for pension and postretirement benefit plans reflects the long-term nature of the obligations and the investment horizon of the plan assets. The discount rate is used to determine the present value of future benefit obligations and the net periodic benefit cost. The discount rate used to value the present value of future benefit obligations as of each year-end is the rate used to estimate the net periodic benefit cost for the following year. Table 15 presents a sensitivity analysis of a 25-basis point change in discount rates to the pension and postretirement benefit plan’s net periodic benefit cost and benefit obligations: Discount Rate Sensitivity Analysis Table 15 Impact of Base Discount Rate Discount Rate 25 Basis Point Increase Discount Rate 25 Basis Point Decrease (dollars in thousands) Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits 2025 Net Periodic Benefit Cost 5.67  % 5.74  % $ 16  $ (49) $ (20) $ 49  Benefit Plan Obligations as of December 31, 2025 5.40  % 5.62  % (1,361) (574) 1,387  588  Estimated 2026 Net Periodic Benefit Cost 5.40  % 5.62  % 19  (49) (23) 49  See Note 13 in Item 8. “Notes to the Consolidated Financial Statements” for more information on our pension and postretirement benefit plans. Contractual Obligations The Company has various contractual obligations that affect its cash flows and liquidity. Our non-cancelable operating leases and finance lease obligations are primarily related to branch premises, equipment, and a portion of the Company’s headquarters’ building with lease terms extending through 2052. Purchase obligations arise from agreements to purchase goods or services that are enforceable and legally binding. Other contracts included in purchase obligations primarily consist of service agreements for various systems and applications supporting bank operations. Pension and postretirement benefit contributions represent the minimum expected contribution to the unfunded non-qualified pension plan and postretirement benefit plan. Actual contributions may differ from these estimates. Additional information regarding material contractual obligations is presented in Note 8, Note 13, Note 17, Note 19, and Note 22 in Item 8. “Notes to Consolidated Financial Statements.” Foreign Activities Cross-border outstandings are defined as loans (including accrued interest), acceptances, interest-bearing deposits with other banks, other interest-bearing investments, and any other monetary assets which are denominated in dollars or other non-local currency. As of December 31, 2025 and 2024, we did not have cross-border outstandings to any foreign country which exceeded 0.75% of our total assets. Corporate Risk Profile Managing risk is an essential part of successfully operating our business. Management believes that the most prominent risk exposures for the Company are credit risk, market risk, liquidity risk management, capital management, and operational risk. Credit Risk Credit risk is the risk that borrowers or counterparties will be unable or unwilling to repay their obligations in accordance with the underlying contractual terms. We manage and control credit risk in the loan and lease portfolio by adhering to 43 Table of Contents well-defined underwriting criteria and account administration standards established by management. Written credit policies document underwriting standards, approval levels, exposure limits, and other guidelines deemed necessary and prudent. Portfolio exposures at the obligor, industry, product, and/or geographic location levels are actively monitored to manage concentration risk. Furthermore, credit risk management includes an independent credit review process that assesses compliance with commercial and consumer credit policies, risk ratings, and other critical credit information. In addition to utilizing risk management practices that are based upon established and sound lending practices, we adhere to Regulatory Safety and Soundness credit standards. This includes understanding and evaluating our customers’ borrowing needs and capacity to repay, in conjunction with specific risks in their line of business, economic factors, character and history. Commercial and industrial loans are made primarily for the purpose of financing equipment acquisition, expansion, working capital, and other general business purposes. Lease financing primarily consists of sales-type leases to finance capital purchases ranging from computer equipment to equipment and vehicles. The credit decisions for these transactions are based upon an assessment of the overall financial capacity of the applicant. A determination is made as to the applicant’s ability to repay in accordance with the proposed terms as well as an overall assessment of the risks involved. In addition to an evaluation of the applicant’s financial condition, a determination is made of the probable adequacy of the primary and secondary sources of repayment, such as additional collateral or personal guarantees, to be relied upon in the transaction. Credit agency reports of the applicant’s credit history supplement the analysis of the applicant’s and/or guarantor’s creditworthiness. Within our commercial and industrial loan portfolio are loans made to non-depository financial institutions (“NDFIs”). NDFIs encompass a wide range of financial entities that provide services similar to those of traditional banking institutions, but do not accept deposits from the general public and are not regulated by the federal banking agencies. As of December 31, 2025 and 2024, total loans to NDFIs were $80.8 million and $136.0 million, representing less than 1.0% of total loans and leases in both years. Commercial mortgages and construction loans are offered to real estate investors, developers, builders, and owner-occupants primarily domiciled in Hawaiʻi. These loans are secured by first mortgages on real estate at loan-to-value (“LTV”) ratios deemed appropriate based on the property type, location, overall quality, and sponsorship. Generally, these LTV ratios do not exceed 75% based on regulatory-compliant appraisals that we obtain for the underlying properties. Commercial properties are well diversified among property types, with primary concentrations in multi-family, industrial, retail and lodging. Commercial mortgage and construction loans are substantially secured by properties located in Hawaiʻi. Commercial mortgage loans are underwritten based on the economic fundamentals of the property and the creditworthiness of the borrower. In evaluating a proposed commercial mortgage loan, we primarily emphasize the ratio of the property’s projected net cash flows to the loan’s debt servicing requirement. The debt service coverage ratio normally is not less than 125% and it is computed after deducting for a vacancy factor and property expenses as appropriate. In addition, a personal guarantee of the loan or a portion thereof is sometimes required from the principal(s) of the borrower. We typically require title insurance insuring the priority of our lien, fire, and extended coverage casualty insurance, and flood insurance, if appropriate, in order to protect our security interest in the underlying property. In addition, business interruption insurance or other insurance may be required. Owner-occupant commercial mortgage loans are underwritten based upon the cash flow of the business provided that the real estate asset is utilized in the operation of the business. Real estate is evaluated independently as a secondary source of repayment. Construction loans are underwritten against projected cash flows derived from rental income, business income from an owner-occupant, or the sale of the property to an end-user. We may mitigate the risks associated with these types of loans by requiring fixed-price construction contracts, performance and payment bonding, controlled disbursements, and pre-sale contracts or pre-lease agreements. We offer a variety of first lien and second lien mortgage loans to consumers within our markets with first lien residential mortgages comprising our largest loan category. Residential mortgage loans are secured by a primary residence, or a secondary residence or investor property and are underwritten to assess the credit risks and financial capacity and repayment ability of the applicant. Decisions are primarily based on LTV ratios, debt-to-income (“DTI”) ratios or debt-service coverage ratios (“DSCR”), liquidity, and credit scores. LTV ratios generally do not exceed 80%, although higher levels are permitted with mortgage insurance. We offer variable rate mortgage loans with interest rates that are subject to change every six months after the third, fifth, seventh, or tenth year, depending on the product and are based on the Secured Overnight Financing Rate (“SOFR”). Variable rate mortgage loans are underwritten at fully indexed interest rates. We do not offer payment-option facilities, sub-prime or Alt-A loans, or any product with negative amortization. We selectively offer interest-only mortgage loans to private banking clients. 44 Table of Contents Home equity lines and loans are secured primarily by a first lien mortgage, or a second lien mortgage on a primary residence, secondary residence, or investor property. The underwriting terms for the home equity product generally permits borrowing availability, in the aggregate, up to 80% of the value of the collateral property for primary residence and up to 75% of the value of the collateral property for secondary residence or investor at the time of origination. We offer fixed and variable rate home equity loans, with variable rate loans underwritten at fully indexed interest rates. Our procedures for underwriting home equity loans include an assessment of an applicant’s overall financial capacity and repayment ability. Decisions are primarily based on LTV ratios, DTI ratios or DSCR, liquidity and credit scores. Maximum line and loan amounts and LTVs are determined by collateral value and customer segment. Automobile lending activities include loans and leases secured by new or used automobiles, and leases secured by new automobiles. We originate automobile loans on an indirect basis through selected dealerships in Hawaiʻi, Guam and Saipan, and we originate automobile leases on an indirect basis through selected dealerships in Hawaiʻi. Our procedures for underwriting automobile loans and leases include an assessment of an applicant’s overall financial capacity and repayment ability. Although an applicant’s creditworthiness is the primary consideration, the underwriting process also includes a comparison of the value of the automobile collateral to the proposed loan amount. We require borrowers to maintain full coverage automobile insurance on automobile loans and leases, with the Bank listed as either the loss payee or additional insured. 45 Table of Contents Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 16 presents a five-year history of non-performing assets and accruing loans and leases past due 90 days or more. Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 16 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Non-Performing Assets Non-Accrual Loans and Leases Commercial Commercial Mortgage $ 2,085 $ 2,450 $ 2,884 $ 3,309 $ 8,205 Commercial and Industrial 1,940 4,627 39 37 243 Total Commercial 4,025 7,077 2,923 3,346 8,448 Consumer Residential Mortgage 5,382 5,052 2,935 4,239 3,305 Home Equity 4,469 4,514 3,791 4,022 4,881 Total Consumer 9,851 9,566 6,726 8,261 8,186 Total Non-Accrual Loans and Leases 13,876 16,643 9,649 11,607 16,634 Foreclosed Real Estate 295 2,657 2,098 1,040 2,332 Total Non-Performing Assets $ 14,171 $ 19,300 $ 11,747 $ 12,647 $ 18,966 Accruing Loans and Leases Past Due 90 Days or More Consumer Residential Mortgage $ 8,834 $ 3,984 $ 3,814 $ 2,429 $ 3,159 Home Equity 2,152 2,845 1,734 1,673 3,456 Automobile 520 776 399 589 729 Other 753 677 648 683 426 Total Consumer 12,259 8,282 6,595 5,374 7,770 Total Accruing Loans and Leases Past Due 90 Days or More $ 12,259 $ 8,282 $ 6,595 $ 5,374 $ 7,770 Total Loans and Leases $ 14,082,050 $ 14,075,980 $ 13,965,026 $ 13,646,420 $ 12,259,076 Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.10% 0.12% 0.07% 0.09% 0.14% Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate 0.10% 0.14% 0.08% 0.09% 0.15% Ratio of Non-Performing Assets to Total Assets 0.06% 0.08% 0.05% 0.05% 0.08% Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate 0.07% 0.12% 0.05% 0.06% 0.17% Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate 0.13% 0.15% 0.11% 0.11% 0.14% Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate 0.19% 0.20% 0.13% 0.13% 0.22% Table 17 presents the activity in Non-Performing Assets (“NPAs”) for 2025: (dollars in thousands) Table 17 Balance at Beginning of Year $ 19,300  Additions1 9,298  Reductions Payments (6,071) Return to Accrual Status (2,356) Sales of Foreclosed Real Estate (2,868) Charge-offs/Write-downs1 (3,132) Total Reductions (14,427) Balance at End of Year $ 14,171  1.Excludes loans that are fully charged off and placed on non-accrual status during the same period. 46 Table of Contents NPAs consist of non-accrual loans and leases and foreclosed real estate. Changes in the level of non-accrual loans and leases typically are caused by loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status. Non-accrual loans and leases as of December 31, 2025 were $13.9 million, a decrease of $2.8 million or 17% from prior year. As of December 31, 2025, our residential mortgage non-accrual loans of $5.4 million were comprised of 18 loans with a weighted average current loan-to-value ratio of 69%. As of December 31, 2025, our home equity non-accrual loans of $4.5 million were comprised of 55 loans with a weighted average current loan-to-value ratio of 52%. Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $0.3 million as of December 31, 2025 compared to $2.7 million as of December 31, 2024. If interest due on the balances of all non-accrual loans as of December 31, 2025 had been accrued under the original terms, approximately $1.0 million in additional total interest income would have been recognized in 2025. Loans and Leases Past Due 90 Days or More and Still Accruing Interest Loans and leases past due 90 days or more and still accruing interest were $12.3 million as of December 31, 2025, a $4.0 million or 48% increase from prior year. The increase was primarily in our residential mortgage portfolio. This category includes loans and leases that are well-secured and in the process of collection, as well as loans and leases that have not reached the specified past due status to be placed on non-accrual. 47 Table of Contents Reserve for Credit Losses The reserve for credit losses consists of the Allowance and the Unfunded Reserve. Table 18 presents the activity in the Company’s reserve for credit losses for the years ended December 31: Reserve for Credit Losses Table 18 (dollars in thousands) 2025 2024 2023 2022 2021 Balance at Beginning of Period $ 150,649 $ 152,429 $ 151,247 $ 164,297 $ 221,303 Loans and Leases Charged-Off Commercial Commercial and Industrial (3,107) (2,609) (987) (925) (1,117) Consumer Residential Mortgage — (385) (6) (80) (316) Home Equity (423) (701) (82) (100) (417) Automobile (6,026) (5,342) (5,247) (4,652) (4,939) Other (9,465) (10,099) (8,645) (7,585) (10,530) Total Loans and Leases Charged-Off (19,021) (19,136) (14,967) (13,342) (17,319) Recoveries on Loans and Leases Previously Charged-Off Commercial Commercial and Industrial 345 832 350 552 506 Consumer Residential Mortgage 91 303 489 1,193 2,467 Home Equity 573 792 1,073 1,500 1,666 Automobile 2,266 2,168 2,782 2,276 3,510 Other 2,000 2,111 2,455 2,702 3,205 Total Recoveries on Loans and Leases 5,275 6,206 7,149 8,223 11,354 Net Charged-Off - Loans and Leases (13,746) (12,930) (7,818) (5,119) (5,965) Net Charged-Off - Accrued Interest Receivable — — — (131) (541) Provision for Credit Losses 1 Loans and Leases 11,984 15,055 9,782 (8,263) (52,466) Accrued Interest Receivable 2 — — — (283) (1,745) Unfunded Commitments 3 (484) (3,905) (782) 746 3,711 Total Provision for Credit Losses 11,500 11,150 9,000 (7,800) (50,500) Balance at End of Period $ 148,403 $ 150,649 $ 152,429 $ 151,247 $ 164,297 Components Allowance for Credit Losses - Loans and Leases $ 146,766 $ 148,528 $ 146,403 $ 144,439 $ 157,821 Allowance for Credit Losses - Accrued Interest Receivable 2 — — — — 414 Reserve for Unfunded Commitments 3 1,637 2,121 6,026 6,808 6,062 Total Reserve for Credit Losses $ 148,403 $ 150,649 $ 152,429 $ 151,247 $ 164,297 Average Loans and Leases Outstanding $ 14,026,427 $ 13,868,916 $ 13,851,551 $ 12,896,510 $ 12,023,669 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding 0.10  % 0.09  % 0.06  % 0.04  % 0.05  % Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 4 1.04  % 1.06  % 1.05  % 1.06  % 1.29  % 1.Certain prior period information has been reclassified to conform to current presentations. 2.On December 31, 2020, the Company established a reserve on accrued interest receivable related to loans in which interest payment forbearances were granted. The reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. In 2022, the reserve on accrued interest receivable was fully released. 3.The reserve for unfunded commitments is separately recorded in other liabilities in the consolidated statements of condition. The offsetting provision was recorded in provision for credit losses in the consolidated statements of income. 4.The numerator comprises the Allowance for Credit Losses - Loans and Leases. 48 Table of Contents Allowance for Credit Losses Table 19 and 20 presents the allocation of the Allowance by loan and lease category. Allocation of Allowance for Credit Losses Table 19 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Commercial Commercial Mortgage $ 50,244  $ 43,745  $ 32,646  $ 32,588  $ 29,997  Commercial and Industrial 23,834  32,840  34,036  24,283  27,650  Construction 3,876  5,315  5,090  4,223  4,311  Lease Financing 1,589  2,000  2,302  2,806  2,992  Total Commercial 79,543  83,900  74,074  63,900  64,950  Consumer Residential Mortgage 13,979  15,685  19,452  17,079  20,721  Home Equity 13,261  12,130  14,317  16,654  18,924  Automobile 16,398  17,116  18,799  21,566  25,018  Other 23,585  19,697  19,761  25,240  28,208  Total Consumer 67,223  64,628  72,329  80,539  92,871  Total Allocation of Allowance for Credit Losses $ 146,766  $ 148,528  $ 146,403  $ 144,439  $ 157,821  Allocation of Allowance as Percent of Loan or Lease Category Table 20 December 31, 2025 2024 2023 2022 2021 Alloc. Allow. as % of Loan or Lease Category Loan Category as % of Total Loans and Leases Alloc. Allow. as % of Loan or Lease Category Loan Category as % of Total Loans and Leases Alloc. Allow. as % of Loan or Lease Category Loan Category as % of Total Loans and Leases Alloc. Allow. as % of Loan or Lease Category Loan Category as % of Total Loans and Leases Alloc. Allow. as % of Loan or Lease Category Loan Category as % of Total Loans and Leases Commercial Commercial Mortgage 1.19  % 29.87  % 1.09  % 28.56  % 0.87  % 26.85  % 0.87  % 27.30  % 0.95  % 25.71  % Commercial and Industrial 1.50  11.25  1.93  12.11  2.05  11.91  1.72  10.32  1.86  12.14  Construction 1.86  1.48  1.72  2.19  1.67  2.18  1.62  1.91  1.96  1.80  Lease Financing 1.80  0.63  2.20  0.64  3.84  0.43  4.04  0.51  2.85  0.86  Total Commercial 1.31  43.22  1.37  43.52  1.28  41.37  1.17  40.04  1.31  40.51  Consumer Residential Mortgage 0.29  33.91  0.34  32.88  0.42  33.55  0.37  34.10  0.48  35.15  Home Equity 0.63  15.02  0.56  15.38  0.63  16.22  0.75  16.31  1.03  14.98  Automobile 2.38  4.90  2.24  5.43  2.24  6.00  2.48  6.38  3.40  6.01  Other 5.69  2.94  5.02  2.79  4.93  2.86  5.84  3.17  6.88  3.35  Total Consumer 0.84  56.78  0.81  56.48  0.88  58.63  0.98  59.96  1.27  59.49  Total 1.04  % 100.00  % 1.06  % 100.00  % 1.05  % 100.00  % 1.06  % 100.00  % 1.29  % 100.00  % Allowance for Credit Losses (the “Allowance”) As of December 31, 2025, the Allowance was $146.8 million or 1.04% of total loans and leases outstanding compared with an Allowance of $148.5 million or 1.06% of total loans and leases outstanding as of December 31, 2024. The Allowance reflects management’s best estimate of losses over the life of loans and leases in our portfolio in accordance with the CECL approach. The Ratio of Allowance for Credit Losses to Loans and Leases Outstanding was stable compared with the prior year. Net charge-offs of loans and leases were $13.7 million or 0.10% of total average loans and leases in 2025 compared to $12.9 million or 0.09% of total average loans and leases in the prior year. Net charge-offs in our consumer portfolios were $11.0 million in 2025 compared to $11.2 million in the prior year. Net charge-offs in our commercial portfolios were $2.8 million in 2025 compared to $1.8 million in the prior year. 49 Table of Contents The allocation of the Allowance to our commercial portfolio segment decreased by $4.4 million or 5% from the prior year. This decrease was primarily due to reductions in the Allowance of $9.0 million allocated to the commercial and industrial portfolio and $1.4 million allocated to the construction portfolio, partially offset by an increase in the Allowance of $6.5 million allocated to the commercial mortgage portfolio. The net decrease is primarily due to a decline in specific reserves, as well as a lower qualitative adjustment driven by improved Maui conditions and improved outlook for certain commercial borrowers. The allocation of the Allowance to our consumer portfolio segment increased by $2.6 million or 4% from the prior year. This increase was primarily due to increases in the Allowance of $3.9 million allocated to the other portfolio and $1.1 million allocated to the home equity portfolio partially offset by a decrease in the Allowance of $1.7 million allocated to the residential mortgage portfolio. The net increase was primarily due to a weaker forecasted economic outlook. See Note 3 in Item 8. “Notes to Consolidated Financial Statements” for more information on the Allowance and credit quality indicators. Reserve for Unfunded Commitments The Unfunded Reserve was $1.6 million as of December 31, 2025, and $2.1 million as of December 31, 2024, a decrease of $0.5 million, which was primarily due to lower unfunded commitments in our construction loan portfolio. Provision for Credit Losses The provision for credit losses was $11.5 million for the year ended December 31, 2025 compared to $11.2 million in the prior year. The increase in the provision was due to a higher provision for the Allowance for loans and leases, partially offset by a lower provision for the Unfunded Reserve. Other Credit Risks In the normal course of business, we serve the needs of state and political subdivisions in multiple capacities, including traditional banking products such as deposit services, and by investing in municipal debt securities. The carrying value of our municipal debt securities was $66.3 million as of December 31, 2025, and $63.9 million as of December 31, 2024. We also maintained investments in corporate bonds with a carrying value of $745.9 million as of December 31, 2025, and $682.2 million as of December 31, 2024. We are exposed to credit risk in these investments should the issuer of a security be unable to meet its financial obligations. This may result in the issuer failing to make scheduled interest payments and/or being unable to repay the principal upon maturity. Our use of derivative financial instruments exposes the Company to counterparty credit risk. See Note 16 in Item 8. “Notes to Consolidated Financial Statements” for more information. Market Risk Market risk is the potential of loss arising from adverse changes in interest rates and prices. We are exposed to market risk as a consequence of the normal course of conducting our business activities. Our market risk management process involves measuring, monitoring, and mitigating risks that can significantly impact our consolidated statements of income and condition. In this management process, we balance market risks with expected returns to enhance earnings performance while managing volatility to an acceptable level. Our primary market risk exposure is interest rate risk. Interest Rate Risk The objective of our interest rate risk management process is to optimize net interest income while operating within acceptable limits. This involves balancing expected returns with potential earnings and price volatility due to changes in interest rates over short-term, medium-term, and long-term time horizons, while maintaining adequate levels of funding and liquidity. The potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in interest rates. This interest rate risk arises primarily from our core business activities of extending loans, holding the securities portfolio, and accepting deposits. 50 Table of Contents We utilize two management guidelines to measure our interest rate risk exposure: 1) net interest income (“NII”) sensitivity, and 2) economic value of equity (“EVE”) sensitivity. NII and EVE sensitivities measure the estimated percentage change in forward looking net-interest income and economic value, respectively, under instantaneous parallel shocks of the yield curve ranging from -400 basis points to +400 basis points. We measure NII sensitivity over two successive 12-month periods to evaluate interest rate risk over short-term and medium-term time horizons. EVE sensitivity, which captures the present value of all on and off-balance sheet positions, measures interest rate risk over a long-term time horizon. The results are measured relative to established limits and early warning indicators that ensure that fluctuation in income and valuation in both up and down rate shocks remain within levels approved by the Asset and Liability Management Committee (“ALCO”) and the Board of Directors. While we recognize that instantaneous parallel shocks of the entire yield curve are unrealistic, we believe that the application of immediate shocks provides us with a sufficient range of sensitivities to frame our risk exposures. We pay particular attention to the rate shock sensitivities within the range of +/-200 basis points, as we believe this range represents the highest probability of rate movements that could occur in the near to medium term. For the year ended December 31, 2025, we remained within applicable guidelines for such scenarios. The ALCO, which is comprised of members of executive management, utilizes several techniques to manage interest rate risk, which include: •adjusting the balance sheet mix or altering the interest rate characteristics of assets and liabilities; •changing product pricing strategies; •modifying characteristics, including mix and duration, of the investment securities portfolio; and •using derivative financial instruments. Changes in interest rates may have a material impact on earnings and valuation due to balance sheet cash flow, maturity structure and repricing frequency. The investment portfolio and loan portfolios have significant repricing volumes and cash flows from maturities and paydowns, providing opportunities to redeploy funds in order to respond to changes in the rate environment. These assets are primarily funded by deposit balances, which generally have an indeterminate life. Historically, our deposit base consists primarily of core consumer and commercial deposit relationships. While we strive to position our balance sheet to organically reduce volatility in earnings and valuation, primarily through our funding and investment portfolio positioning, as well as product pricing strategies, we have also established a hedging program designed to allow us to adjust the duration of our earning assets synthetically. As of December 31, 2025, our hedging program consisted primarily of pay-fixed interest rate swaps. As interest rates change, we may use different instruments to manage interest rate risk, including caps, floors, swaptions and other commonly utilized derivative instruments. See Note 16 in Item 8. “Notes to Consolidated Financial Statements.” A key element in our ongoing process to measure and monitor interest rate risk is the utilization of an asset/liability simulation model. This model attempts to capture the dynamic nature of assets and liabilities in various interest rate environments. It estimates and measures our balance sheet sensitivity to changes in interest rates. Given the structure of our balance sheet, model results are particularly sensitive to changes in prepayment rates on mortgage-related assets and the repricing behavior of interest-bearing deposits. We utilize a model to estimate the prepayment behavior of our mortgage-related assets, which considers the characteristics of the underlying mortgage loans, including rate (used to gauge refinance incentive), seasoning or age, and seasonality. The model’s forecasted results are regularly tested against historical prepayment behavior and is, in the ordinary course, recalibrated if the difference between actual and projected prepayments exceed established guidelines. Separate models are utilized to project interest-bearing deposit repricing behavior in various interest rate environments. These models were developed based upon our historical repricing behavior over several interest rate cycles. The models’ forecast results are periodically tested against historical pricing and have been and may continue to be recalibrated. We utilize net interest income simulations to analyze short-term income sensitivities to changes in interest rates. Table 21A presents, for the twelve months subsequent to December 31, 2025 and 2024, an estimate of the change in net interest income that would result from a gradual and immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. The base case scenario assumes a static balance sheet and generally unchanged interest rates. 51 Table of Contents Net Interest Income Sensitivity Profile Table 21A Impact on Future Annual Net Interest Income (dollars in thousands) December 31, 2025 December 31, 2024 Immediate Change in Interest Rates (basis points) +400 $ 32,646  5.2  % $ 31,028  5.6  % +300 27,489  4.4  25,281  4.6  +200 20,696  3.3  18,783  3.4  +100 11,458  1.8  10,393  1.9  -100 (8,525) (1.4) (13,029) (2.3) -200 (20,383) (3.3) (27,883) (5.0) -300 (48,664) (7.8) (43,536) (7.8) -400 (86,935) (13.9) (65,753) (11.8) Based on our net interest income simulation as of December 31, 2025, net interest income is expected to increase as interest rates rise. Rising interest rates drive higher income from floating rate loans, investment securities and interest rate swaps, as well as higher reinvestment yields on cash flows. Conversely, declining interest rates cause floating rate loans and investment yields to fall, income on interest rate swaps to decline and cash flows to be reinvested at lower rates. In addition, deposits are assumed to reprice lower than 100% beta, causing interest expense to change less rapidly than market rate changes. Compared with prior year, NII sensitivity over the next 12 months at December 31, 2025 generally increased in dollar amount, but decreased as a percentage of base. This shift in sensitivity profile was due to several factors including: higher base NII in 2025, an $800 million reduction in active pay-fixed swaps, the implementation of new deposit pricing models with asymmetric beta to rising and falling rate scenarios, and deposit rates hitting floors in the -300 and -400 basis points shock at current lower rate levels. To analyze the impact of changes in interest rates more realistically, we also simulate non-parallel interest rate scenarios. These scenarios help to isolate the sensitivity of earnings to various points on the yield curve. Based upon our interest rate simulations, the Company is exposed to movements in both the short and long-end of the yield curve. A movement higher or lower in the short-end of the yield curve would lead to floating-rate assets immediately repricing, while liability funding would react on a lag. Thus, net interest income may decrease from the base case in the near term if short-term rates were to decrease, although would benefit if short-term rates were to increase and liabilities maintained their ability to lag market rate increases. A movement higher or lower in the long end of the yield curve would lead to assets repricing over time given ongoing cash flows from maturities and prepayments of investment securities and loans. Net interest income may decrease from the base case should long-term rates decline from their current levels, although would benefit if long-term rates were to increase. The following table presents an estimate of the change in EVE that would result from an immediate change in interest rates, moving in a parallel fashion over the entire yield curve, relative to the measured base case scenario. Similar to the 52 Table of Contents sensitivity profile above, the base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged. Economic Value of Equity Sensitivity Profile Table 21B Impact on Economic Value of Equity (dollars in thousands) December 31, 2025 December 31, 2024 Immediate Change in Interest Rates (basis points) +400 $ (676,020) (21.0) % $ (1,032,211) (29.1) % +300 (519,819) (16.2) (763,479) (21.5) +200 (353,098) (11.0) (496,443) (14.0) +100 (177,928) (5.5) (238,689) (6.7) -100 196,634  6.1  177,198  5.0  -200 356,504  11.1  274,546  7.7  -300 315,375  9.8  294,363  8.3  -400 106,004  3.3  (99,219) (2.8) Compared to December 31, 2024, EVE sensitivity decreased in the rising rate scenarios and increased in the falling rate scenarios. We implemented new deposit pricing and attrition models during the period, which updated the repricing beta and average life assumptions, and lowered deposit account duration compared to the prior deposit models. This is partially offset by a reduction in the notional balance of active pay-fixed interest rate swaps. These factors resulted in generally lower liability duration, partially offset by higher asset duration, resulting in improved EVE modeling results. Other Market Risks In addition to interest rate risk, we are exposed to other forms of market risk in our normal business transactions. Foreign currency holdings expose us to a small degree of foreign currency risk. Our trust and asset management income are at risk to fluctuations in the market values of underlying assets, particularly debt and equity securities. Also, our share-based compensation expense is dependent on the fair value of our restricted stock units and restricted stock at the date of grant. The fair value of restricted stock units and restricted stock is impacted by the market price of the Parent’s common stock on the date of grant and is at risk to changes in equity markets, general economic conditions, and other factors. Liquidity Risk Management The objective of our liquidity risk management process is to manage cash flow and liquidity in an effort to provide continuous access to sufficient, reasonably priced funds. Funding requirements are impacted by factors such as loan originations and refinancings, changes in deposit balances, liability issuances and settlements, and off-balance sheet funding commitments. We adhere to various regulatory guidelines regarding required liquidity levels and regularly monitor our liquidity position in light of the changing economic environment and customer activity. Based on periodic liquidity assessments, we may alter our asset, liability, and off-balance sheet positions. The ALCO monitors sources and uses of funds and modifies asset and liability positions as liquidity requirements change. This process, combined with our ability to raise funds in money and capital markets and through private placements, provides flexibility in managing the exposure to liquidity risk. We maintain access to ample sources of readily available contingent liquidity. As of December 31, 2025, we had pledged loans and investment securities to the Federal Reserve Discount Window and had remaining borrowing capacity of $7.7 billion. We are also a member of the Federal Home Loan Bank (“FHLB”) of Des Moines. As of December 31, 2025, we had pledged loans to the FHLB and had remaining borrowing capacity of $2.1 billion. In addition, we utilize our investment securities portfolio as collateral to secure deposits of public entities as well as repurchase agreements with private institution counterparties. The high-quality nature of our investment securities portfolio, which consists primarily of government and agency securities, facilitates the use of these assets for pledging purposes. Other sources of liquidity also include investment securities in our available-for-sale securities portfolio and our ability to sell loans in the secondary market. Our core deposits have historically provided us with a long-term source of stable and low-cost source of funding. Additional funding is also available through the issuance of long-term debt or equity. 53 Table of Contents General market and economic conditions will impact our ability to borrow funds from external sources, as well as the cost of such borrowing both in terms of rate as well as haircuts on collateral pledged to support such borrowings. Although a significant portion of our investment securities were in an unrealized loss position as of December 31, 2025, we believe we have sufficient access to various forms of liquidity that would alleviate the need to liquidate these investment securities and realize the losses. We continued our focus on maintaining a strong liquidity position. As of December 31, 2025, cash and cash equivalents were $0.9 billion, the carrying value of our available-for-sale investment securities was $3.5 billion, and total deposits were $21.2 billion. As of December 31, 2025, our available-for-sale investment securities portfolio had an average remaining duration of approximately 3.01 years, excluding the impact from our interest rate swaps. Capital Management We actively manage capital, commensurate with our risk profile, to enhance shareholder value. We also seek to maintain capital levels for the Company and the Bank at amounts in excess of the regulatory “well-capitalized” thresholds. Periodically, we may respond to market conditions by implementing changes to our overall balance sheet positioning to manage our capital position. The Company and the Bank are each subject to regulatory capital requirements administered by the federal banking agencies and the Division of Financial Institutions, an agency of the State of Hawai‘i Department of Commerce and Consumer Affairs. Failure to meet minimum capital requirements could cause certain mandatory and discretionary actions by regulators that, if undertaken, would likely have a material effect on our financial statements. The Company and the Bank must meet specific capital guidelines that involve quantitative and qualitative measures intended to ensure capital adequacy. As of December 31, 2025, the Company’s capital levels met the “well-capitalized” requirement under regulatory guidelines. There have been no conditions or events since December 31, 2025, that management believes have changed either the Company’s or the Bank’s capital classifications. The Company’s regulatory capital ratios are presented in Table 22 below. 54 Table of Contents Table 22 presents a five-year history of activities and balances in our capital accounts, along with key capital ratios. Shareholders’ Equity and Regulatory Capital Table 22 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Change in Shareholders’ Equity Net Income $ 205,902  $ 149,994  $ 171,202  $ 225,804  $ 253,372  Cash Dividends Paid on Common Shares (112,956) (112,313) (111,795) (112,557) (110,633) Cash Dividends Paid on Preferred Shares (21,077) (12,644) (7,877) (7,877) (2,975) Dividend Reinvestment Program 4,106  4,246  4,535  4,680  4,835  Preferred Stock Issued, Net —  160,614  —  —  175,487  Common Stock Repurchased Under Share Repurchase Program (5,001) —  (9,854) (49,842) (27,339) Equity Compensation Plan Common Stock Repurchases (3,773) (5,302) (4,436) (5,221) (3,919) Other 1 116,237  68,937  55,472  (349,603) (51,724) Increase (Decrease) in Shareholders’ Equity $ 183,438  $ 253,532  $ 97,247  $ (294,616) $ 237,104  Regulatory Capital Total Common Shareholders’ Equity $ 1,506,212  $ 1,322,774  $ 1,238,756  $ 1,141,508  $ 1,436,124  Adjustments: CECL Transitional Amount —  2,375  4,749  7,124  9,498  Goodwill, Net of Deferred Tax Liabilities (28,746) (28,746) (28,746) (28,746) (28,747) Deferred Tax Assets from Tax Credit Carryforwards (2,191) —  —  —  —  Postretirement Benefit Liability Adjustments 20,253  23,396  23,261  25,078  33,496  Net Unrealized Losses on Investment Securities, Net of Tax 2 224,185  319,993  373,427  409,579  32,886  Other 9,097  9,097  198  198  198  Common Equity Tier 1 Capital 1,728,810  1,648,889  1,611,645  1,554,741  1,483,455  Preferred Stock, Net of Issuance Cost 336,101  336,101  175,487  175,487  175,487  Tier 1 Capital 2,064,911  1,984,990  1,787,132  1,730,228  1,658,942  Allowable Reserve for Credit Losses 148,404  148,634  148,400  145,202  153,001  Total Regulatory Capital $ 2,213,315  $ 2,133,624  $ 1,935,532  $ 1,875,430  $ 1,811,943  Risk-Weighted Assets $ 14,246,238  $ 14,225,908  $ 14,226,780  $ 14,238,798  $ 12,236,805  Key Regulatory Capital Ratios Common Equity Tier 1 Capital Ratio 12.14  % 11.59  % 11.33  % 10.92  % 12.12  % Tier 1 Capital Ratio 14.49  13.95  12.56  12.15  13.56  Total Capital Ratio 15.54  15.00  13.60  13.17  14.81  Tier 1 Leverage Ratio 8.57  8.31  7.51  7.37  7.32  1.Includes unrealized gains and losses on investment securities, minimum pension liability adjustments, and common stock issuances under share-based compensation and related tax impact. 2.Includes unrealized gains and losses related to the Company’s reclassification of AFS investment securities to the HTM category. Shareholders’ Equity As of December 31, 2025, shareholders’ equity was $1.9 billion, an increase of $183.4 million or 11.0% from the prior year. For 2025, the increase was attributed to net income of $205.9 million, other comprehensive income of $99.0 million, share-based compensation of $16.2 million, and common stock issuances of $5.1 million offset by cash dividends of $113.0 million paid on common stock shares, cash dividends of $21.1 million paid on preferred stock shares, common stock repurchased under share repurchase program of $5.0 million, and common stock repurchases related to taxes withheld for share based compensation of $3.8 million. 55 Table of Contents In 2025, we repurchased 76,547 shares of common stock at a total cost of $5.0 million under our share repurchase program. Remaining buyback authority was $121.0 million as of December 31, 2025. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors. In January 2026, the Parent’s Board of Directors declared a quarterly dividend of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, of $10.94 per share, equivalent to $0.2735 per depositary share and its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, of $20.00 per share, equivalent to $0.5000 per depositary share. The dividends on the Series A Preferred Stock and Series B Preferred Stock were paid on February 2, 2026, to shareholders of record at the close of business on January 16, 2026. In January 2026, the Parent’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Parent’s outstanding common shares. The dividend will be payable on March 13, 2026, to shareholders of record at the close of business on February 27, 2026. Regulatory Initiatives Affecting the Banking Industry Basel III Under final FRB and FDIC approved rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks minimum requirements increased for both the quantity and quality of capital held by the Company. The Basel III capital standards substantially revised the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the definitions and the components of Tier 1 capital and Total Capital, the method of evaluating risk-weighted assets, institution of a capital conservation buffer, and other matters affecting regulatory capital ratios. Strict eligibility criteria for regulatory capital instruments were also implemented under the rules. The phase-in period for the final rules became effective for the Company on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule, which were fully implemented on January 1, 2019. As of December 31, 2025, the Company’s capital levels remained characterized as “well-capitalized.” Management continues to monitor regulatory developments and their potential impact to the Company’s capital and liquidity requirements. Stress Testing Enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act in May 2018 significantly altered several provisions of the Dodd-Frank Act, including how stress tests are run. Bank holding companies with total assets of less than $100 billion, such as the Company, are no longer subject to company-run stress testing requirements in section 165(i)(2) of the Dodd-Frank Act, including publishing a summary of results. At this time, the Company continues to run internal stress tests as a component of our comprehensive risk management and capital planning process. Operational Risk Operational risk represents the risk of loss resulting from our operations, including, but not limited to, the risk of fraud by employees or persons outside the Company, errors relating to transaction processing and technology, failure to adhere to compliance requirements, and the risk of cyber attacks. We are also exposed to operational risk through our outsourcing arrangements, and the effect that changes in circumstances or capabilities of our outsourcing vendors can have on our ability to continue to perform operational functions necessary to our business. The risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulatory standards, adverse business decisions or their implementation, and customer attrition due to potential negative publicity. Operational risk is inherent in all business activities, and management of this risk is important to the achievement of Company goals and objectives. Our Operational Risk and Compliance Committee (the “ORC”) provides oversight and assesses the most significant operational risks including cybersecurity risks facing the Company. We have developed a framework that provides for a centralized operating risk management function through the ORC, supplemented by business unit responsibility for managing operational risks specific to their business units. Our internal audit department also validates the system of 56 Table of Contents internal controls through ongoing risk-based audit procedures and reports on the effectiveness of internal controls to executive management and the Audit Committee of the Board of Directors. We continuously strive to strengthen our system of internal controls to improve the oversight of operational risk. While our internal controls have been designed to minimize operational risks, there is no assurance that business disruption or operational losses will not occur. On an ongoing basis, management reassesses operational risks, implements appropriate process changes, and invests in enhancements to our systems of internal controls. Guarantees We pool FHA insured and VA guaranteed residential mortgage loans for sale to Ginnie Mae. We also sell residential mortgage loans in the secondary market to Fannie Mae. The agreements under which we sell residential mortgage loans to Ginnie Mae or Fannie Mae and the insurance or guaranty agreements with the FHA and VA contain provisions that include various representations and warranties regarding the origination and characteristics of the residential mortgage loans. Although these loans are primarily sold on a non-recourse basis, we may be obligated to repurchase residential mortgage loans or reimburse the respective investor if it is found that required documents were not delivered or were defective. We also service substantially all of the loans we sell to investors in the secondary market. Each agreement under which we act as servicer generally specifies a standard of responsibility for our actions and provides protection against expenses and liabilities incurred by us when acting in compliance with the respective servicing agreements. However, if we commit a material breach of obligations as servicer, we may be subject to various penalties which may include the repurchase of an affected loan or a reimbursement to the respective investor.