[Management View]
Key metrics: Fully diluted EPS of $1.20, a 29% YoY increase and a 13% rise from the prior quarter. NIM rose to 2.46%, marking the sixth consecutive quarter of expansion. Return on common equity improved to 13.6%. Average deposits increased at a 7% annualized rate.
Strategic priorities: Focus on modernizing the broker-dealer platform through the Saterra partnership and launching Banco Advisors. Continued investment in wealth and high-net-worth segments.

[Outlook]
Performance guidance: NIM expected to further expand. Low single-digit loan growth outlook reaffirmed for Q4 2025 and into 2026. Normalized non-interest income for Q4 2025 projected at $42 million-$43 million. Normalized fourth-quarter non-interest expense at approximately $109 million.
Future plans: Resume share repurchases, maintain commitment to dividend stability, and controlled non-interest expense growth rate projected at 3% to 4% for 2026.

[Financial Performance]
YoY/QoQ trends: Fully diluted EPS increased by 29% YoY and 13% QoQ. NIM improved for the sixth consecutive quarter, up seven basis points to 2.46%. Net interest income increased by $7 million, driven by asset repricing and deposit growth.

[Q&A Highlights]
Question 1: Did the spot rate on total deposits include interest-bearing deposits?
Answer: The total spot rate on deposits was 154 basis points.

Question 2: When do you expect to achieve a 3% NIM?
Answer: Achieving 2.50% NIM by year-end seems likely. Moving into 2026, a base layer of 25 basis points pickup in NIM per year is expected, with additional upside from fed funds rate reductions and deposit book repricing.

Question 3: What is the outlook for loan growth in Q4 and next year?
Answer: Low single digits is still the right way to think about it. Q3 was better than Q2, and Q4 should be better than Q3. Potential upside if there is more economic clarity and rate reduction.

Question 4: How are the changes on the wealth side progressing?
Answer: The partnership with Saterra is in production, and the repapering process is concluding. The new platform will enhance client experience and attract top advisers. Efforts are also focused on better coordination between commercial bankers and wealth advisers.

Question 5: What has driven the market share gains in Hawaii?
Answer: Gains have been balanced across consumer, commercial, and municipal segments. Success attributed to consistent market commitment and strategy application.

Question 6: Any updated thoughts on share repurchases and capital return?
Answer: Happy with current capital levels. Likely to deploy capital into repurchases this quarter and into next year. Dividend payout ratio is in good shape.

Question 7: Has derisking impacted growth?
Answer: Derisking has not been a headwind for a while and is not expected to impede growth moving forward.

Question 8: What is the expected expense growth rate for 2026?
Answer: Projected expense growth rate for 2026 is 3% to 4%, likely closer to the lower threes.

Question 9: What drove the reduction in Central Business District office loans?
Answer: Exited a relationship SNC credit in the office space opportunistically.

Question 10: Does the NII impact from swaps assume the notional swaps remain at $1.4 billion?
Answer: Yes, the expectation is for the notional swaps to remain at $1.4 billion, with some roll-off in 2027 and forward starting swaps becoming active in 2026.

[Sentiment Analysis]
Tone of analysts: Generally positive, with a focus on understanding the outlook for NIM, loan growth, and strategic initiatives in wealth management.
Tone of management: Confident and optimistic about future performance, emphasizing strategic investments and disciplined financial management.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|----------------------------|---------------|---------------|--------------|
| Fully Diluted EPS | $1.20 | $1.06 | +29% |
| Net Interest Margin (NIM) | 2.46% | 2.39% | +7 bps |
| Return on Common Equity | 13.6% | 12.8% | +0.8% |
| Average Deposits | +7% annualized| +6% annualized| +1% |
| Net Interest Income (NII) | +$7 million | +$6.2 million | +$0.8 million|

[Risks and Concerns]
- Potential economic instability and interest rate fluctuations could impact NIM and loan growth.
- Credit quality risks, although currently well-managed, could pose future challenges.
- Execution risks related to strategic initiatives in wealth management and technology integration.

[Final Takeaway]
Bank of Hawaii delivered strong financial performance in Q3 2025, with significant improvements in EPS, NIM, and return on equity. The bank's strategic focus on wealth management and technology modernization is expected to drive future growth. Management remains confident in achieving further NIM expansion and maintaining disciplined expense management. Investors should monitor economic conditions and the execution of strategic initiatives for potential impacts on future performance.