BOH

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 second 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 43 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 Hawai‘i’s near-term economic outlook has weakened due to the Iran war's impact on oil prices, which is expected to raise inflation, increase travel costs, and slow growth in key visitor source markets. Jet fuel prices have roughly doubled recently, resulting in significant transpacific airfare increases and prompting some airline capacity reductions. Japanese travel demand remains constrained by the historically weak yen. Despite these challenges, total visitor arrivals are projected to increase modestly in 2026, although growth is expected to slow in 2027. Hawai‘i’s labor market remains stable but stagnant. Statewide payroll growth was flat through the second quarter of 2026 and there was a slight contraction in the labor force. Construction continues to be a bright spot, supported by federal projects, Maui wildfire rebuilding efforts, and development of the New Aloha Stadium Entertainment District. The real estate market remains soft, with slow resale activity and declining condominium prices. 44 Table of Contents For the first six months of 2026, the median price of single-family home sales on Oahu increased by 2.6% while the median price of condominiums increased by 1.5% compared to the same period in 2025. The volume of single-family homes sales on Oahu increased 3.9% and condominium sales decreased 2.3% compared to the same period in 2025. Inventory of single-family homes and condominiums on Oahu was 3.2 months and 7.0 months, respectively, for the second quarter of 2026. Earnings Summary Net income for the second quarter of 2026 was $63.8 million, an increase of $16.2 million, or 33.9%, compared to the same period in 2025. Diluted earnings per common share was $1.47 for the second quarter of 2026, an increase of $0.41, or 38.7%, compared to the same period in 2025. •The return on average common equity for the second quarter of 2026 was 15.47% compared with 12.50% in the same period last year. •Net interest income for the second quarter of 2026 was $153.6 million, an increase of 18.4% compared to the same period last year. •Net interest margin was 2.78% in the second quarter of 2026, an increase of 39 basis points from the same period last year. •The provision for credit losses for the second quarter of 2026 and 2025 was $3.6 million and $3.3 million, respectively. •Noninterest income was $43.3 million in the second quarter of 2026, a decrease of 3.3% compared to the same period last year. •Noninterest expense was $111.2 million in the second quarter of 2026 and remained flat compared to the same period last year. •The effective tax rate for the second quarter of 2026 was 22.3% compared with 21.2% for the same period last year. •Total assets were $23.8 billion as of June 30, 2026, a decrease of 1.4% from December 31, 2025. •Total loans and leases were $14.3 billion as of June 30, 2026, an increase of 1.5% from December 31, 2025. •The allowance for credit losses on loans and leases was $147.0 million as of June 30, 2026, an increase of $0.2 million from December 31, 2025. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.03% at the end of the quarter, down 1 basis point from December 31, 2025. •Net loan and lease charge-offs during the second quarter of 2026 were $3.4 million, comprised of charge-offs of $4.7 million partially offset by recoveries of $1.3 million. Compared to the same quarter of 2025, net loan and lease charge-offs increased by $0.8 million. Net loan and lease charge-offs to average loans and leases outstanding during the second quarter of 2026 was 0.10% compared to 0.07% in the same period last year. •Total non-performing assets (“NPAs”) were $11.5 million as of June 30, 2026, down $2.7 million from December 31, 2025. NPAs were 8 basis points of total loans and leases and foreclosed real estate at the end of the quarter, down 2 basis points from December 31, 2025. •The investment securities portfolio was $7.7 billion as of June 30, 2026, a decrease of 0.9% from December 31, 2025. The investment portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises. •Total deposits were $20.9 billion as of June 30, 2026 and $21.2 billion as of December 31, 2025. •Total shareholders’ equity was $1.9 billion as of June 30, 2026 and December 31, 2025. •During the three months ended June 30, 2026, we repurchased 215,995 shares of common stock at an average cost per share of $78.60 and a total cost of $17.0 million under the share repurchase program. Total remaining buyback authority under the share repurchase program was $88.9 million at June 30, 2026. •We maintained a quarterly dividend of $0.70 per common share during the three months ended June 30, 2026 and 2025. 45 Table of Contents Analysis of Unaudited Statements of Income Average balances, related income and expenses, and resulting yields and rates 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 Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 (dollars in millions) Average Balance Income/Expense 2 Yield/Rate Average Balance Income/Expense 2 Yield/Rate Average Balance Income/Expense 2 Yield/Rate Average Balance Income/Expense 2 Yield/Rate Earning Assets Cash and Cash Equivalents $ 196.2 $ 1.7 3.48 % $ 353.7 3.8 4.27 % $ 283.8 $ 5.1 3.54 % $ 426.4 $ 9.3 4.33 % Investment Securities Available-for-Sale Taxable 3,669.5 36.1 3.93 2,987.2 26.7 3.58 3,634.0 70.3 3.88 2,889.3 50.8 3.53 Non-Taxable 31.7 0.4 5.08 27.4 0.4 5.85 31.9 0.8 5.08 24.3 0.7 5.77 Held-to-Maturity Taxable 4,091.6 17.9 1.75 4,462.1 19.7 1.77 4,133.2 36.3 1.76 4,505.1 39.8 1.77 Non-Taxable 33.4 0.2 2.10 34.0 0.2 2.10 33.5 0.4 2.10 34.1 0.4 2.10 Total Investment Securities 7,826.2 54.6 2.79 7,510.7 47.0 2.50 7,832.6 107.8 2.76 7,452.8 91.7 2.47 Loans Held for Sale 2.7 0.0 6.20 2.2 0.0 5.66 3.1 0.1 5.65 2.2 0.1 5.87 Loans and Leases 3 Commercial Mortgage 4,314.9 55.7 5.17 4,025.2 53.7 5.35 4,268.0 109.7 5.18 4,020.3 106.2 5.33 Commercial and Industrial 1,624.6 19.5 4.83 1,668.1 21.1 5.07 1,604.1 38.2 4.81 1,685.8 42.3 5.06 Construction 209.7 3.3 6.30 366.2 6.7 7.30 212.7 6.7 6.38 352.4 12.7 7.26 Commercial Lease Financing 84.6 0.9 4.26 93.4 1.0 4.07 85.7 1.8 4.27 92.3 1.8 3.95 Residential Mortgage 4,812.6 48.9 4.06 4,626.5 45.6 3.95 4,797.3 96.8 4.03 4,621.6 90.5 3.91 Home Equity 2,085.3 24.1 4.63 2,141.5 23.3 4.37 2,094.2 47.7 4.59 2,147.9 45.8 4.30 Automobile 677.4 9.5 5.65 730.1 9.4 5.19 681.0 18.9 5.61 741.3 18.8 5.10 Other 409.9 7.9 7.74 398.0 7.5 7.53 408.8 15.7 7.75 394.0 14.6 7.47 Total Loans and Leases 14,219.0 169.8 4.79 14,049.0 168.3 4.80 14,151.8 335.5 4.77 14,055.6 332.7 4.76 Other 82.8 1.4 6.34 65.2 1.1 6.72 82.5 2.6 6.33 65.2 2.1 6.70 Total Earning Assets 22,326.9 227.5 4.08 21,980.8 220.2 4.01 22,353.8 451.1 4.05 22,002.2 435.9 3.98 Non-Earning Assets 1,534.9 1,616.2 1,534.6 1,615.2 Total Assets $ 23,861.8 $ 23,597.0 $ 23,888.4 $ 23,617.4 Interest-Bearing Liabilities Interest-Bearing Deposits Demand $ 3,781.7 $ 7.4 0.78 % $ 3,705.5 $ 7.6 0.82 % $ 3,810.2 $ 14.0 0.74 % $ 3,739.2 $ 14.7 0.79 % Savings 8,750.0 39.9 1.83 8,578.6 48.1 2.25 8,709.4 78.6 1.82 8,561.7 95.2 2.24 Time 2,707.6 18.5 2.75 3,050.0 26.8 3.52 2,730.5 38.1 2.82 3,043.7 54.3 3.60 Total Interest-Bearing Deposits 15,239.3 65.8 1.73 15,334.1 82.5 2.16 15,250.1 130.7 1.73 15,344.6 164.2 2.16 Securities Sold Under Agreements to Repurchase 50.0 0.5 3.88 50.0 0.5 3.88 50.0 1.0 3.89 63.3 1.2 3.88 Other Debt 593.3 6.2 4.20 558.3 5.9 4.23 577.2 12.0 4.21 568.2 11.9 4.23 Total Interest-Bearing Liabilities 15,882.6 72.5 1.83 15,942.4 88.9 2.24 15,877.3 143.7 1.83 15,976.1 177.3 2.24 Net Interest Income $ 155.0 $ 131.3 $ 307.4 $ 258.6 Interest Rate Spread 2.25 1.77 2.22 1.74 Net Interest Margin 2.78 2.39 2.76 2.36 Noninterest-Bearing Demand Deposits 5,587.6 5,365.6 5,620.8 5,340.1 Other Liabilities 529.1 584.6 525.5 611.1 Shareholders' Equity 1,862.5 1,704.4 1,864.8 1,690.1 Total Liabilities and Shareholders' Equity $ 23,861.8 $ 23,597.0 $ 23,888.4 $ 23,617.4 1Due to rounding, the amounts presented in this table may not tie to other amounts presented elsewhere in this report. 2Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1.4 million and $2.8 million for the three and six months ended June 30, 2026, respectively, and $1.6 million and $3.1 million for the three and six months ended June 30, 2025, respectively. 3Non-performing loans and leases are included in the respective average loan and lease balances. 46 Table of Contents Analysis of Change in Net Interest Income - Taxable-Equivalent Basis Table 2 Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Compared to June 30, 2025 Compared to June 30, 2025 (dollars in millions) Volume 1 Rate 1 Total Volume 1 Rate 1 Total Change in Interest Income: Cash and Cash Equivalents $ (1.5) $ (0.6) $ (2.1) $ (2.7) $ (1.5) $ (4.2) Investment Securities Available-for-Sale Taxable 6.5 2.9 9.4 14.1 5.4 19.5 Non-Taxable 0.1 (0.1) 0.0 0.2 (0.1) 0.1 Held-to-Maturity Taxable (1.6) (0.2) (1.8) (3.3) (0.2) (3.5) Non-Taxable 0.0 — 0.0 0.0 — 0.0 Total Investment Securities 5.0 2.6 7.6 11.0 5.1 16.1 Loans Held for Sale 0.0 0.0 0.0 0.0 0.0 0.0 Loans and Leases Commercial Mortgage 3.7 (1.8) 1.9 6.4 (3.0) 3.4 Commercial and Industrial (0.5) (1.0) (1.5) (2.0) (2.1) (4.1) Construction (2.6) (0.8) (3.4) (4.6) (1.4) (6.0) Commercial Lease Financing 0.0 0.0 0.0 0.0 0.0 0.0 Residential Mortgage 1.9 1.4 3.3 3.5 2.8 6.3 Home Equity (0.6) 1.4 0.8 (1.2) 3.1 1.9 Automobile (0.7) 0.8 0.1 (1.6) 1.8 0.2 Other 0.2 0.2 0.4 0.6 0.5 1.1 Total Loans and Leases 1.4 0.2 1.6 1.1 1.7 2.8 Other 0.5 (0.3) 0.2 0.6 (0.1) 0.5 Total Change in Interest Income 5.4 1.9 7.3 10.0 5.2 15.2 Change in Interest Expense: Interest-Bearing Deposits Demand 0.2 (0.4) (0.2) 0.3 (1.0) (0.7) Savings 0.9 (9.2) (8.3) 1.6 (18.2) (16.6) Time (2.8) (5.4) (8.2) (5.2) (10.9) (16.1) Total Interest-Bearing Deposits (1.7) (15.0) (16.7) (3.3) (30.1) (33.4) Securities Sold Under Agreements to Repurchase — — — (0.3) 0.0 (0.3) Other Debt 0.4 (0.1) 0.3 0.2 (0.1) 0.1 Total Change in Interest Expense (1.3) (15.1) (16.4) (3.4) (30.2) (33.6) Change in Net Interest Income $ 6.7 $ 17.0 $ 23.7 $ 13.4 $ 35.4 $ 48.8 1The 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 balance of our earning assets for the three and six months ended June 30, 2026 increased by $346.1 million or 2% and $351.6 million or 2%, respectively, compared to the same periods in 2025. These increases were primarily due to an increase in the average balance of available-for-sale investment securities. As compared to the same periods last year, yields on our investment securities portfolio increased by 29 basis points during both the three and six months ended June 30, 2026 47 Table of Contents primarily due to the amortization of lower yielding investments being reinvested into new investments at higher current interest rates, as well as the impact of the repositioning of a portion of our AFS securities portfolio in the fourth quarter of 2025, which resulted in a higher-yielding securities mix. As compared to the same period last year, yields on our loan and lease portfolio decreased by 1 basis point during the three months ended June 30, 2026, primarily due to a decrease in rates resulting in the repricing of certain variable‑rate loans. Yields on our loan and lease portfolio increased by 1 basis point during the six months ended June 30, 2026, primarily due to the continued amortization of lower‑yielding loans along with the origination of new loans at higher prevailing interest rates, partially offset by a decrease in rates resulting in the repricing of certain variable‑rate loans following Federal Reserve rate cuts. The average balance of our interest-bearing deposits for the three and six months ended June 30, 2026 decreased by $94.8 million or 1% and $94.5 million or 1%, respectively, compared to the same periods in 2025. As compared to the same periods last year, the cost of our interest-bearing deposits decreased by 43 basis points during both the three and six months ended June 30, 2026 primarily due to a decrease in the prevailing interest rate environment. Noninterest Income Table 3 presents the components of noninterest income. Noninterest Income Table 3 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2026 2025 Dollar Change Percent Change 2026 2025 Dollar Change Percent Change Trust and Asset Management $ 13,712 $ 12,097 $ 1,615 13.4 % $ 26,157 $ 23,838 $ 2,319 9.7 % Fees, Exchange, and Other Service Charges 11,127 14,383 (3,256) (22.6) 22,055 28,820 (6,765) (23.5) Service Charges on Deposit Accounts 8,353 8,119 234 2.9 16,793 16,378 415 2.5 Bank-Owned Life Insurance 3,923 3,714 209 5.6 8,070 7,325 745 10.2 Annuity and Insurance 2,017 1,437 580 40.4 3,486 2,992 494 16.5 Mortgage Banking 839 849 (10) (1.2) 1,715 1,837 (122) (6.6) Investment Securities Losses, Net (1,287) (1,126) (161) (14.3) (2,559) (2,733) 174 6.4 Other Income 4,615 5,322 (707) (13.3) 8,914 10,396 (1,482) (14.3) Total Noninterest Income $ 43,299 $ 44,795 $ (1,496) (3.3) % $ 84,631 $ 88,853 $ (4,222) (4.8) % Trust and asset management income is comprised of fees earned from the management and administration of trusts and other customer assets. The management fees are largely based upon the market value of the assets and the fee rate charged to customers. Total trust assets under administration were $14.3 billion and $12.6 billion as of June 30, 2026 and June 30, 2025, respectively. Trust and Asset Management income increased by $1.6 million or 13% in the second quarter of 2026 and by $2.3 million or 10% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to higher agency and trust-related fees. Fees, exchange, and other service charges decreased by $3.3 million or 23% in the second quarter of 2026 and by $6.8 million or 23% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to lower merchant income following the sale of our merchant services portfolio in the fourth quarter of 2025. Annuity and insurance income increased by $0.6 million or 40% in the second quarter of 2026 and by $0.5 million or 17% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to higher production resulting from expanded product offerings and improved referral activity during 2026. Other income decreased by $0.7 million or 13% in the second quarter of 2026 and by $1.5 million or 14% for the six months ended June 30, 2026 compared to the same periods last year. These decreases were primarily due to a gain on sale of other real estate owned (“OREO”) property and the recovery of a previously charged-off bank-owned life insurance policy during the quarter ended June 30, 2025. 48 Table of Contents Noninterest Expense Table 4 presents the components of noninterest expense. Noninterest Expense Table 4 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2026 2025 Dollar Change Percent Change 2026 2025 Dollar Change Percent Change Salaries $ 40,455 $ 39,644 $ 811 2.0 % $ 79,445 $ 77,886 $ 1,559 2.0 % Incentive Compensation 5,721 5,067 654 12.9 11,804 10,640 1,164 10.9 Medical, Dental, and Life Insurance 4,843 3,610 1,233 34.2 9,065 8,147 918 11.3 Retirement and Other Benefits 4,355 3,894 461 11.8 8,952 8,955 (3) — Payroll Taxes 3,070 2,998 72 2.4 8,391 7,764 627 8.1 Share-Based Compensation 2,497 3,668 (1,171) (31.9) 9,779 7,169 2,610 36.4 Commission Expense 1,714 1,053 661 62.8 2,927 2,176 751 34.5 Separation Expense (13) 1,374 (1,387) (100.9) 736 1,455 (719) (49.4) Total Salaries and Benefits 62,642 61,308 1,334 2.2 131,099 124,192 6,907 5.6 Net Occupancy 10,868 10,499 369 3.5 21,650 21,058 592 2.8 Net Equipment 10,604 9,977 627 6.3 21,215 20,169 1,046 5.2 Data Processing 5,463 5,456 7 0.1 11,044 10,723 321 3.0 Professional Fees 5,276 4,263 1,013 23.8 9,502 8,527 975 11.4 FDIC Insurance 2,978 3,640 (662) (18.2) 5,697 5,282 415 7.9 Other Expense: Delivery and Postage Services 1,856 1,665 191 11.5 3,573 3,345 228 6.8 Advertising 1,694 1,876 (182) (9.7) 4,375 4,039 336 8.3 Mileage Program Travel 1,000 1,044 (44) (4.2) 2,050 2,105 (55) (2.6) Operational Losses 868 1,375 (507) (36.9) 1,702 2,605 (903) (34.7) Business Development and Travel 826 670 156 23.3 1,195 1,050 145 13.8 Other 7,111 9,010 (1,899) (21.1) 14,155 18,147 (3,992) (22.0) Total Other Expense 13,355 15,640 (2,285) (14.6) 27,050 31,291 (4,241) (13.6) Total Noninterest Expense $ 111,186 $ 110,783 $ 403 0.4 % $ 227,257 $ 221,242 $ 6,015 2.7 % Total salaries and benefits expense increased by $1.3 million or 2% in the second quarter of 2026, primarily due to an increase in medical, dental, and life insurance expense, base salaries, and commission expense. Total salaries and benefits expense increased by $6.9 million or 6% for the six months ended June 30, 2026 compared to the same period last year, primarily due to an increase in share-based compensation related to the accelerated vesting in the first quarter of 2026 of restricted stock awards pursuant to the retirement provisions of performance-based restricted stock awards granted in 2024 and 2025. Base salaries increased by $1.6 million or 2% primarily due to annual merit increases, while incentive compensation increased by $1.2 million or 11% during the six months ended June 30, 2026 compared to the same period last year. Net equipment expense increased by $0.6 million or 6% in the second quarter of 2026 and by $1.0 million or 5% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to higher software license fees and maintenance. Professional fees increased by $1.0 million or 24% in the second quarter of 2026 and by $1.0 million or 11% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to an increase in consulting costs incurred. FDIC insurance expense decreased by $0.7 million or 18.2% in the second quarter of 2026 compared to the same period last year, primarily due to a lower FDIC assessment rate. FDIC insurance expense increased by $0.4 million or 8% for the six months ended June 30, 2026 compared to the same period last year, primarily due to a partial recovery of the FDIC special assessment in 2025, partially offset by the lower FDIC assessment rate, discussed above. Total other expense decreased by $2.3 million or 14.6% in the second quarter of 2026 and by $4.2 million or 14% for the six months ended June 30, 2026 compared to the same periods last year, primarily due to lower merchant transaction and card 49 Table of Contents processing fees following the sale of our merchant services portfolio in the fourth quarter of 2025, as well as a decrease in operational losses due to fewer dispute charge-offs. Provision for Income Taxes Table 5 presents our provision for income taxes and effective tax rates. Provision for Income Taxes and Effective Tax Rates Table 5 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2026 2025 2026 2025 Provision for Income Taxes $ 18,318 $ 12,808 $ 35,387 $ 24,979 Effective Tax Rates 22.31 % 21.19 % 22.59 % 21.42 % The provision for income taxes was $18.3 million in the second quarter of 2026, an increase of $5.5 million compared to the same period last year. The effective tax rate for the second quarter of 2026 was 22.3%, an increase from 21.2% for the same period last year. The higher effective tax rate for the second quarter of 2026 compared to the same period last year was primarily due to an increase in nondeductible compensation and a decrease in tax benefits from discrete items. The provision for income taxes was $35.4 million in the six months ended June 30, 2026, an increase of $10.4 million compared to the same period last year. The effective tax rate for the six months ended June 30, 2026 was 22.6%, an increase from 21.4% for the same period last year. The higher effective tax rate for the six months ended June 30, 2026 compared to the same period last year was primarily due to an increase in nondeductible compensation, a decrease in tax benefits from discrete items, and a decrease in tax exempt income. Analysis of Unaudited Statements of Condition Cash and Cash Equivalents Cash and cash equivalents were $452.8 million as of June 30, 2026, a decrease of $493.7 million or 52.2% from the prior year. The decrease was primarily due to a net decrease in deposits and loan growth during the period. Investment Securities The carrying value of our investment securities portfolio was $7.7 billion and $7.8 billion as of June 30, 2026 and December 31, 2025, respectively. The decrease was primarily due to portfolio runoff, including maturities and paydowns, partially offset by the purchase of $445.4 million in available-for-sale investment securities during the six months ended June 30, 2026. We continually evaluate our investment securities portfolio in conjunction with our response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, adjust hedge positions, and change the proportion of investments made into the AFS and held-to-maturity (“HTM”) investment categories. Mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac represent the largest concentration in our portfolio. As of June 30, 2026, the issuers of these securities carry credit ratings equivalent to those of the U.S. Government, reflecting the explicit and/or implicit guarantees provided. Net unrealized losses in our AFS and HTM investment securities were $784.7 million as of June 30, 2026 and $739.8 million as of December 31, 2025. In addition, we transferred AFS investment securities to the HTM category in 2022. At the time of transfer, these securities had a fair value of $1.3 billion. The unrealized losses at the time of transfer remain in accumulated other comprehensive income and are amortized over the estimated remaining life of the securities through an adjustment to the effective yield of the HTM portfolio. The unamortized balance of these losses was $144.4 million and $155.0 million as of June 30, 2026 and December 31, 2025, respectively. See Note 7 Accumulated Other Comprehensive Income to the unaudited Consolidated Financial Statements for more information. 50 Table of Contents Loans and Leases Table 6 presents the composition of our loan and lease portfolio by major categories. Loan and Lease Portfolio Balances Table 6 (dollars in thousands) June 30, 2026 December 31, 2025 Dollar Change Percent Change Commercial Commercial Mortgage $ 4,319,221 $ 4,205,791 $ 113,430 2.7 % Commercial and Industrial 1,676,535 1,584,245 92,290 5.8 Construction 164,504 208,584 (44,080) (21.1) Lease Financing 85,338 88,303 (2,965) (3.4) Total Commercial 6,245,598 6,086,923 158,675 2.6 Consumer Residential Mortgage 4,864,875 4,775,502 89,373 1.9 Home Equity 2,079,127 2,114,809 (35,682) (1.7) Automobile 674,899 690,376 (15,477) (2.2) Other 422,126 414,440 7,686 1.9 Total Consumer 8,041,027 7,995,127 45,900 0.6 Total Loans and Leases $ 14,286,625 $ 14,082,050 $ 204,575 1.5 % Total loans and leases as of June 30, 2026 increased by $204.6 million or 1.5% from December 31, 2025, due to growth in both our commercial and consumer loans. Commercial loans and leases as of June 30, 2026 increased by $158.7 million or 2.6% from December 31, 2025. The increase was primarily due to growth in our commercial mortgage and commercial and industrial portfolios, which increased by $113.4 million or 2.7% and $92.3 million or 5.8%, respectively. This increase was partially offset by a decrease in our construction portfolio, which decreased by $44.1 million or 21.1%, primarily due to the completion of several construction projects during the second quarter. Consumer loans and leases as of June 30, 2026 increased by $45.9 million or 0.6% from December 31, 2025, primarily due to growth in our residential mortgage portfolio, which increased by $89.4 million or 1.9%, largely attributable to condominium project lending. This was partially offset by paydowns in our home equity and automobile loans portfolios. Table 7 presents an additional breakdown of the Company’s commercial mortgage portfolio. Commercial Mortgage Breakdown Table 7 June 30, 2026 December 31, 2025 (dollars in thousands) Amount Percent of Total % Owner Occupied Amount Percent of Total % Owner Occupied Multi-family $ 1,183,643 27 % — % $ 1,203,151 29 % — % Industrial 824,694 19 39 776,260 18 38 Retail 755,910 18 3 696,492 17 3 Lodging 624,846 15 — 649,196 15 — Office 315,887 7 22 336,144 8 22 Other 1 614,241 14 20 544,548 13 23 Total Commercial Mortgage $ 4,319,221 100 % 12 % $ 4,205,791 100 % 12 % 1.Amount includes unamortized loan origination fees. 51 Table of Contents Table 8 presents the geographic distribution of our loan and lease portfolio. Geographic Distribution of Loan and Lease Portfolio Table 8 (dollars in thousands) Hawai‘i U.S. Mainland 1 Guam Other Pacific Islands Total June 30, 2026 Commercial Commercial Mortgage $ 3,942,647 $ 206,704 $ 169,454 $ 416 $ 4,319,221 Commercial and Industrial 1,456,051 136,227 61,183 23,074 1,676,535 Construction 164,504 — — — 164,504 Lease Financing 84,052 — 1,286 — 85,338 Total Commercial 5,647,254 342,931 231,923 23,490 6,245,598 Consumer Residential Mortgage 4,788,255 5,347 71,093 180 4,864,875 Home Equity 2,032,400 35 46,692 — 2,079,127 Automobile 538,099 — 110,166 26,634 674,899 Other 364,587 — 49,134 8,405 422,126 Total Consumer 7,723,341 5,382 277,085 35,219 8,041,027 Total Loans and Leases $ 13,370,595 $ 348,313 $ 509,008 $ 58,709 $ 14,286,625 Percentage of Total Loans and Leases 94 % 2 % 4 % 0 % 100 % 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 % 1For secured loans and leases, classification is made based on where the collateral is located. For unsecured loans and leases, classification 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. 52 Table of Contents Other Assets Table 9 presents the major components of other assets. Other Assets Table 9 (dollars in thousands) June 30, 2026 December 31, 2025 Dollar Change Percent Change Low-Income Housing Investments $ 205,926 $ 224,714 $ (18,788) (8.4) % Deferred Tax Assets and Tax Receivable 138,094 138,350 (256) (0.2) Derivative Financial Instruments 109,040 99,581 9,459 9.5 Federal Home Loan Bank of Des Moines Stock 32,500 34,750 (2,250) (6.5) Federal Reserve Bank Stock 31,120 30,770 350 1.1 Prepaid Expenses 24,742 24,156 586 2.4 Accounts Receivable 14,350 15,569 (1,219) (7.8) Deferred Compensation Plan Assets 12,781 15,959 (3,178) (19.9) Foreclosed Real Estate 171 295 (124) (42.0) Other 51,620 47,877 3,743 7.8 Total Other Assets $ 620,344 $ 632,021 $ (11,677) (1.8) % Low-income housing investments decreased by $18.8 million or 8% due to the amortization of existing investments. Derivative financial instruments increased by $9.5 million or 10%, primarily due to increasing fair values of our interest rate swaps impacted by prevailing interest rates. Deferred compensation plan assets decreased by $3.2 million or 20%, primarily due to distributions from the executive deferred compensation plan during the six months ended June 30, 2026. Deposits Table 10 presents the composition of our deposits by major customer categories. Deposits Table 10 (dollars in thousands) June 30, 2026 December 31, 2025 Dollar Change Percent Change Consumer $ 10,454,082 $ 10,466,617 $ (12,535) (0.1) % Commercial 8,167,262 8,597,265 (430,003) (5.0) Public and Other 2,271,431 2,124,613 146,818 6.9 Total Deposits $ 20,892,775 $ 21,188,495 $ (295,720) (1.4) % Total deposits were $20.9 billion as of June 30, 2026, a decrease of $295.7 million or 1.4% from December 31, 2025. Consumer deposits decreased by $12.5 million due to decreases of $90.6 million in time deposits and $53.6 million in interest-bearing demand deposits, partially offset by increases of $101.8 million in savings deposits and $29.9 million in noninterest-bearing deposits. Commercial deposits decreased by $430.0 million due to decreases of $220.0 million in savings deposits, $203.6 million in noninterest-bearing deposits, and $12.0 million in time deposits, partially offset by an increase of $5.6 million in interest-bearing demand deposits. Public and other deposits increased by $146.8 million due to increases of $212.7 million in interest-bearing demand deposits and $82.3 million in savings deposits, partially offset by a decrease of $148.2 million in time deposits and noninterest-bearing deposits. Table 11 presents the composition of our savings deposits. Savings Deposits Table 11 (dollars in thousands) June 30, 2026 December 31, 2025 Dollar Change Percent Change Regular Savings $ 5,589,021 5,383,975 205,046 3.8 % Money Market 3,116,081 3,357,115 (241,034) (7.2) Total Savings Deposits $ 8,705,102 $ 8,741,090 $ (35,988) (0.4) % The increase in Regular Savings was primarily due to increases in consumer deposits of $112.6 million, commercial deposits of $10.2 million, and public deposits of $82.3 million. The decrease in Money Market was primarily due to decreases in commercial deposits of $230.2 million and consumer deposits of $10.8 million. 53 Table of Contents Table 12 presents the maturity distribution of the estimated uninsured time deposits. Maturity Distribution of Estimated Uninsured Time Deposits Table 12 (dollars in thousands) June 30, 2026 December 31, 2025 Change Remaining maturity: Three months or less $ 523,378 $ 613,444 $ (90,066) After three through six months 361,550 396,599 (35,049) After six through twelve months 298,594 320,938 (22,344) After twelve months 19,330 86,151 (66,821) Total $ 1,202,852 $ 1,417,132 $ (214,280) 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 as of both June 30, 2026 and December 31, 2025. As of June 30, 2026, our remaining repurchase agreement was at a fixed interest rate of 3.89% with a remaining maturity of 3.38 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 6 Securities Sold Under Agreements to Repurchase to the unaudited Consolidated Financial Statements for more information. Other Debt Table 13 presents the composition of our other debt. Other Debt Table 13 (dollars in thousands) June 30, 2026 December 31, 2025 Dollar Change Federal Home Loan Bank of Des Moines Advances $ 500,000 $ 550,000 $ (50,000) Finance Lease Obligations 8,124 8,176 (52) Total $ 508,124 $ 558,176 $ (50,052) Analysis of Business Segments Our business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other. Table 14 summarizes net income (loss) from our business segments. Additional information about segment performance is presented in Note 9 Business Segments to the unaudited Consolidated Financial Statements. Business Segment Net Income Table 14 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2026 2025 Dollar Change Percent Change 2026 2025 Dollar Change Percent Change Consumer Banking $ 38,259 $ 29,737 $ 8,522 28.7 % $ 70,159 $ 59,189 $ 10,970 18.5 % Commercial Banking 37,459 30,694 6,765 22.0 76,525 62,383 14,142 22.7 Total 75,718 60,431 15,287 25.3 146,684 121,572 25,112 20.7 Treasury and Other (11,919) (12,794) 875 6.8 (25,453) (29,950) 4,497 15.0 Consolidated Total $ 63,799 $ 47,637 $ 16,162 33.9 % $ 121,231 $ 91,622 $ 29,609 32.3 % Consumer Banking Net income increased by $8.5 million or 29% in the second quarter of 2026 compared to the same period last year, primarily due to increases in net interest income and in noninterest income, partially offset by increases in noninterest expense and in the provision for credit losses. Net interest income increased by $14.4 million or 15%, primarily due to higher deposit spreads on higher deposit balances. Noninterest income increased by $2.2 million or 6%, primarily due to higher trust and asset management fees and higher annuity and insurance fees. Noninterest expense increased by $4.2 million or 5%, primarily due 54 Table of Contents to higher allocated administrative and support unit costs and higher salaries & benefits expense. The provision for credit losses increased by $0.8 million or 30%, primarily due to higher net charge-offs in the auto loan, installment loan, and home equity portfolios. Net income increased by $11.0 million or 19% in the first six months of 2026 compared to the same period last year, primarily due to increases in net interest income and in noninterest income, partially offset by an increase in noninterest expense. Net interest income increased by $25.0 million or 12%, primarily due to higher deposit spreads on higher deposit balances. Noninterest income increased by $2.1 million or 3% primarily due to higher trust and asset management fees, overdraft fees, and annuity and insurance fees. This was partially offset by lower credit card commissions and lower debit card income. Noninterest expense increased by $12.1 million or 7%, primarily due to higher salaries & benefits expense, mobile and online banking platform costs, operational losses, card production costs, and allocated administrative and support unit costs. Commercial Banking Net income increased by $6.8 million or 22% in the second quarter of 2026 compared to the same period last year, primarily due to an increase in net interest income and a decrease in noninterest expense, partially offset by a decrease in noninterest income. Net interest income increased by $8.6 million or 16%, primarily due to higher average deposit balances and spreads, which increased segment net interest income under our funds transfer pricing methodology. Noninterest income decreased by $2.2 million or 36%, primarily due to a reduction in merchant revenue following the sale of the Bank’s merchant services portfolio in the fourth quarter of 2025, partially offset by increased loan commitment fees and gains on the sale of leased assets. Noninterest expense decreased by $2.9 million or 15%, primarily due to lower merchant transaction processing fees, salaries & benefits, professional fees, and allocated administrative, support unit and treasury expenses, partially offset by increases in data processing, excise taxes, and customer derivative broker charges. Net income increased by $14.1 million or 23% in the first six months of 2026 compared to the same period last year, primarily due to an increase in net interest income and a decrease in noninterest expense, partially offset by a decrease in noninterest income. Net interest income increased by $16.7 million or 13%, primarily due to higher average deposit balances and spreads on interest-bearing and savings deposits, which increased segment net interest income under our funds transfer pricing methodology, partially offset by a decline in time deposits. Noninterest income decreased by $5.7 million or 41%, primarily due to a reduction in merchant revenue following the sale of the Bank’s merchant services portfolio in the fourth quarter of 2025, partially offset by increased customer derivative program revenue. Noninterest expense decreased by $5.8 million or 15%, primarily due to lower merchant transaction processing fees, salaries & benefits, professional fees, and allocated administrative, support unit and treasury expenses, partially offset by increases in data processing, excise taxes, and customer derivative broker charges. Treasury and Other Net loss decreased by $0.9 million or 7% in the second quarter of 2026 compared to the same period last year, primarily due to a decrease in net interest expense, a decrease in the provision for credit losses, and a decrease in noninterest expense, partially offset by a decrease in noninterest income. Net interest expense decreased by $1.0 million or 5%, primarily due to an increase in interest income from higher earning asset balances and yields. Noninterest income decreased by $1.5 million or 31%, primarily due to decreases in other income. Noninterest expense decreased by $0.9 million or 19%, primarily due to decreases in other noninterest expense, partially offset by an increase in salaries & benefits expense. 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. Net loss decreased by $4.5 million or 15% in the first six months of 2026 compared to the same period last year, primarily due to a decrease in net interest expense and a decrease in noninterest expense, partially offset by an increase in the provision for credit losses. Net interest expense decreased by $7.4 million or 20%, primarily due to an increase in interest income from higher earning asset balances and yields. Noninterest expense decreased by $0.3 million or 4%, primarily due to decreases in other noninterest expense, partially offset by an increase in salaries & benefits expense. 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. Corporate Risk Profile Credit Risk We actively manage exposures with deteriorating asset quality to reduce levels of potential loss exposure and closely monitor our reserves and capital to address both anticipated and unforeseen issues. Risk management activities include analysis of portfolio segments and stress tests of certain segments to ensure that reserve and capital levels are appropriate. We perform 55 Table of Contents frequent loan and lease-level risk monitoring and risk rating reviews, which provide opportunities for early interventions to allow for credit exits or restructuring, loan and lease sales, and voluntary workouts and liquidations. Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 15 presents information on NPAs 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 15 (dollars in thousands) June 30, 2026 December 31, 2025 Change Non-Performing Assets Non-Accrual Loans and Leases Commercial Commercial Mortgage $ — $ 2,085 $ (2,085) Commercial and Industrial 1,734 1,940 (206) Total Commercial 1,734 4,025 (2,291) Consumer Residential Mortgage 5,348 5,382 (34) Home Equity 4,225 4,469 (244) Total Consumer 9,573 9,851 (278) Total Non-Accrual Loans and Leases 11,307 13,876 (2,569) Foreclosed Real Estate 171 295 (124) Total Non-Performing Assets $ 11,478 $ 14,171 $ (2,693) Accruing Loans and Leases Past Due 90 Days or More Consumer Residential Mortgage $ 8,887 $ 8,834 $ 53 Home Equity 3,503 2,152 1,351 Automobile 763 520 243 Other 965 753 212 Total Consumer 14,118 12,259 1,859 Total Accruing Loans and Leases Past Due 90 Days or More $ 14,118 $ 12,259 $ 1,859 Total Loans and Leases $ 14,286,625 $ 14,082,050 $ 204,575 Ratio of Non-Accrual Loans and Leases to Total Loans and Leases 0.08 % 0.10 % (0.02) % Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate 0.08 % 0.10 % (0.02) % Ratio of Non-Performing Assets to Total Assets 0.05 % 0.06 % (0.01) % Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate 0.03 % 0.07 % (0.04) % Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate 0.12 % 0.13 % (0.01) % 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 0.18 % 0.19 % (0.01) % Changes in Non-Performing Assets Balance as of December 31, 2025 $ 14,171 Additions 1,263 Reductions Payments (3,070) Return to Accrual Status (756) Charge-offs/Write-downs (130) Total Reductions (3,956) Balance as of June 30, 2026 $ 11,478 56 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, written down, 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 June 30, 2026 were $11.3 million, a decrease of $2.6 million or 19% from December 31, 2025 primarily due to a $2.1 million payoff of a commercial mortgage in the first quarter of 2026. As of June 30, 2026, our residential mortgage non-accrual loans were comprised of 20 loans with a weighted average current loan-to-value ratio of 68%. As of June 30, 2026, our home equity non-accrual loans were comprised of 56 loans with a weighted average current loan-to-value ratio of 51%. 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 $0.2 million as of June 30, 2026 compared to $0.3 million as of December 31, 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 $14.1 million as of June 30, 2026, a $1.9 million or 15% increase from December 31, 2025. The increase was primarily in our home equity portfolio due to an increase in delinquencies. 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. 57 Table of Contents Reserve for Credit Losses Table 16 presents the activity in our reserve for credit losses. Reserve for Credit Losses Table 16 Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2026 2025 2026 2025 Balance at Beginning of Period $ 149,078 $ 149,496 $ 148,403 $ 150,649 Loans and Leases Charged-Off Commercial Commercial and Industrial (385) (206) (615) (1,605) Consumer Residential Mortgage — — (15) — Home Equity (219) (155) (225) (230) Automobile (1,735) (1,253) (3,152) (3,004) Other (2,400) (2,397) (4,794) (4,881) Total Loans and Leases Charged-Off (4,739) (4,011) (8,801) (9,720) Recoveries on Loans and Leases Previously Charged-Off Commercial Commercial Mortgage — — 1,617 — Commercial and Industrial 72 78 125 155 Consumer Residential Mortgage 22 11 33 22 Home Equity 77 180 214 308 Automobile 626 557 1,205 1,190 Other 540 567 1,130 1,024 Total Recoveries on Loans and Leases 1,337 1,393 4,324 2,699 Net Charged-Off - Loans and Leases (3,402) (2,618) (4,477) (7,021) Provision for Credit Losses: Loans and Leases 3,435 3,454 4,706 7,036 Unfunded Commitments 165 (204) 644 (536) Total Provision for Credit Losses 3,600 3,250 5,350 6,500 Balance at End of Period $ 149,276 $ 150,128 $ 149,276 $ 150,128 Components Allowance for Credit Losses - Loans and Leases $ 146,995 $ 148,543 $ 146,995 $ 148,543 Reserve for Unfunded Commitments 2,281 1,585 2,281 1,585 Total Reserve for Credit Losses $ 149,276 $ 150,128 $ 149,276 $ 150,128 Average Loans and Leases Outstanding $ 14,218,951 $ 14,049,025 $ 14,151,786 $ 14,055,563 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (annualized) 0.10 % 0.07 % 0.06 % 0.10 % Ratio of Allowance for Credit Losses to Loans and Leases Outstanding 1 1.03 % 1.06 % 1.03 % 1.06 % 1The numerator comprises the Allowance for Credit Losses - Loans and Leases. Allowance for Credit Losses (the “Allowance”) As of June 30, 2026, the Allowance was $147.0 million or 1.03% of total loans and leases outstanding compared with an Allowance of $146.8 million or 1.04% of total loans and leases outstanding as of December 31, 2025. Net charge-offs on loans and leases for the three and six months ended June 30, 2026 were $3.4 million or 0.10% and $4.5 million or 0.06%, respectively of total average loans and leases on an annualized basis, compared to $2.6 million or 0.07% 58 Table of Contents and $7.0 million or 0.10% of total average loans and leases on an annualized basis for the three and six months ended June 30, 2025, respectively. Reserve for Unfunded Commitments The reserve for unfunded commitments was $2.3 million as of June 30, 2026, an increase of $0.6 million or 39% from December 31, 2025, primarily due to higher unfunded commitments in our commercial and industrial portfolio. The reserve for unfunded commitments is recorded in other liabilities in the unaudited consolidated statements of condition. Provision for Credit Losses For the three and six months ended June 30, 2026, the provision for credit losses was $3.6 million and $5.4 million, respectively, compared to $3.3 million and $6.5 million for the same respective periods last year. The increase in the provision for credit losses for the three months ended June 30, 2026 was primarily due to an increase in the reserve for unfunded commitments. The decrease in the provision for credit losses for the six months ended June 30, 2026 was primarily due to a $1.6 million recovery of a commercial mortgage loan in the first quarter of 2026. 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, controlling, 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 and accepting deposits. 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. As of June 30, 2026, we remained within applicable policy limits 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 AFS investment securities portfolio; and •using derivative financial instruments. 59 Table of Contents 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 June 30, 2026, 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 10 Derivative Financial Instruments to the unaudited 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 and deposit account attrition and average lives in various interest rate environments. These models were developed based upon our historical behavior over several interest rate cycles and are periodically updated. The models’ forecast results are tested against historical results 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 17a presents as of June 30, 2026 and December 31, 2025, an estimate of the change in net interest income over the next twelve months 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. The base case scenario assumes the consolidated statements of condition and interest rates are generally unchanged. Net Interest Income Sensitivity Profile Table 17a Impact on Future Annual Net Interest Income (dollars in thousands) June 30, 2026 December 31, 2025 Immediate Change in Interest Rates (basis points) +400 $ 2,352 0.4 % $ 32,646 5.2 % +300 5,328 0.8 27,489 4.4 +200 6,632 1.0 20,696 3.3 +100 1,987 0.3 11,458 1.8 -100 7,555 1.2 (8,525) (1.4) -200 9,963 1.6 (20,383) (3.3) -300 (23,418) (3.6) (48,664) (7.8) -400 (74,888) (11.7) (86,935) (13.9) As of June 30, 2026, our NII sensitivity profile remained relatively balanced for moderate interest rate movements. Compared with December 31, 2025, the balance sheet became less sensitive to both rising and declining rate environments, reflecting a recalibration of assumptions regarding deposit repricing behavior, changes in balance sheet composition, and a reduction in active pay-fixed interest rate swap positions. Management also evaluates non-parallel yield curve scenarios to assess the impact of changes in the shape of the yield curve on earnings and economic value. 60 Table of Contents Table 17b 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 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 17b Impact on Economic Value of Equity (dollars in thousands) June 30, 2026 December 31, 2025 Immediate Change in Interest Rates (basis points) +400 $ (711,596) (21.1) % $ (676,020) (21.0) % +300 (546,425) (16.2) (519,819) (16.2) +200 (369,273) (10.9) (353,098) (11.0) +100 (184,320) (5.5) (177,928) (5.5) -100 233,833 6.9 196,634 6.1 -200 418,210 12.4 356,504 11.1 -300 375,631 11.1 315,375 9.8 -400 84,263 2.5 106,004 3.3 Compared to December 31, 2025, EVE sensitivity remained generally consistent, as changes in balance sheet composition and derivatives activity had only a modest impact on the long-term valuation profile of the balance sheet. 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 periodically 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 June 30, 2026, 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 FHLB. As of June 30, 2026, we had pledged loans to the FHLB and had remaining borrowing capacity of $2.4 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 AFS 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 relatively low-cost source of funding. Additional funding is also available through the issuance of long-term debt or equity. 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 June 30, 2026, we believe we have 61 Table of Contents 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 June 30, 2026, cash and cash equivalents were $452.8 million, the carrying value of our AFS investment securities was $3.6 billion, and total deposits were $20.9 billion. As of June 30, 2026, our AFS investment securities portfolio was comprised of securities with an average base duration of approximately 3.20 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. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative and qualitative measures. These measures were established by regulations intended to ensure capital adequacy. As of June 30, 2026, the Company’s capital levels remained characterized as “well-capitalized.” There have been no conditions or events since June 30, 2026, 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 18 below. Table 18 presents our regulatory capital and ratios as of June 30, 2026 and December 31, 2025. Regulatory Capital and Ratios Table 18 (dollars in thousands) June 30, 2026 December 31, 2025 Regulatory Capital 1 Total Common Shareholders’ Equity $ 1,530,468 $ 1,506,212 Adjustments: Goodwill, Net of Deferred Tax Liabilities (28,746) (28,746) Deferred Tax Assets from Tax Credit Carryforwards (3,348) (2,191) Postretirement Benefit Liability 19,808 20,253 Net Unrealized Losses on Investment Securities 2 223,667 224,185 Other 9,097 9,097 Common Equity Tier 1 Capital 1,750,946 1,728,810 Preferred Stock, Net of Issuance Cost 336,101 336,101 Tier 1 Capital 2,087,047 2,064,911 Allowable Reserve for Credit Losses 149,276 148,404 Total Regulatory Capital $ 2,236,323 $ 2,213,315 Risk-Weighted Assets $ 14,442,396 $ 14,246,238 Key Regulatory Capital Ratios Common Equity Tier 1 Capital Ratio 12.12 % 12.14 % Tier 1 Capital Ratio 14.45 14.49 Total Capital Ratio 15.48 15.54 Tier 1 Leverage Ratio 8.70 8.57 1Regulatory capital ratios as of June 30, 2026 are preliminary. 2Includes unrealized gains and losses related to the Company’s reclassification of AFS investment securities to the HTM category. Shareholders' Equity As of June 30, 2026, shareholders’ equity was $1.9 billion, an increase of $24.3 million or 1.3% from December 31, 2025. The increase was attributed to net income of $121.2 million, share-based compensation of $10.1 million, common stock issued under purchase and equity compensation plans of $2.4 million, and other comprehensive income of $1.0 million, 62 Table of Contents which were offset by cash dividends declared of $56.2 million on common shares, cash dividends declared of $10.5 million on preferred shares, common stock repurchased under the share repurchase program of $32.1 million, and common stock repurchased of $11.7 million related to taxes withheld for share-based compensation. During the six months ended June 30, 2026, we repurchased 410,091 shares of common stock at an average cost per share of $78.24 and total cost of $32.1 million under the share repurchase program. Remaining buyback authority under our share repurchase program was $88.9 million as of June 30, 2026. 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 July 2026, the Parent’s Board of Directors declared quarterly dividend payments 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 will be payable on August 3, 2026, to shareholders of record at the close of business on July 17, 2026. In July 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 September 15, 2026, to shareholders of record of the common stock at the close of business on August 31, 2026. 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 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. Off-Balance Sheet Arrangements, Credit Commitments, and Contractual Obligations Off-Balance Sheet Arrangements We hold interests in several unconsolidated variable interest entities (“VIEs”). These unconsolidated VIEs are primarily low-income housing partnerships. Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity’s net asset value. The primary beneficiary consolidates the VIE. We have determined that the Company is not the primary beneficiary of these entities. As a result, we do not consolidate these VIEs. Credit Commitments and Contractual Obligations Our credit commitments and contractual obligations have not changed materially since previously reported in our Annual Report on Form 10-K for the year ended December 31, 2025.