CONTENTS FACTS & FIGURES

1-3 2006 IN REVIEW

4 FINANCIAL HIGHLIGHTS

5 BANKING FOR BUSINESS

6 BANKING FOR CONSUMERS

7 WEALTH MANAGEMENT

8 COMMUNITY SERVICE

9 CONDENSED BALANCE SHEETS,INCOME STATEMENTS

10-11 SENIOR MANAGEMENT &SENIOR OFFICERS

12 BOARD OF DIRECTORS

INSIDE BACK COVER:FIRST HAWAIIAN BANKBRANCH NETWORK

First Hawaiian Bank (www.fhb.com), founded in1858, is Hawai‘i's oldest and largest financialinstitution with total assets of $12.0 billion. Thebank is headquartered in Honolulu and has 57

branches throughout Hawai‘i, three in Guam and two in Saipan; an offshorebranch in Grand Cayman, British West Indies; and a representative office inTokyo, Japan. Its subsidiaries include First Hawaiian Leasing, Inc., primarilyengaged in commercial equipment and vehicle leasing; and Bishop StreetCapital Management, Inc., a registered investment advisor which furnishesmoney management services to institutional and individual clients.

First Hawaiian Bank is a subsidiary of BancWestCorporation (www.bancwestcorp.com), a financialservices holding company with total assets of$67.3 billion. BancWest's other major subsidiary

is Bank of the West (www.bankofthewest.com), which has more than 700banking locations in 19 Western and Midwestern states: Arizona, California,Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, NewMexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington,Wisconsin and Wyoming.

BancWest Corporation is a wholly ownedsubsidiary of BNP Paribas (www.bnpparibas.com),one of the world's largest banking and financialservices groups with broad international coverage

and a strong presence in all key financial centers. BNP Paribas has operationsin 85 countries and has leading positions in Corporate and InvestmentBanking, Asset Management & Services and Retail Banking. BNP Paribasenjoys a significant and growing presence in the United States and leadingpositions in Asia and in emerging markets. BNP Paribas had total assets of$1.90 trillion (€1.44 trillion) at December 31, 2006.

Caring—Our employees have a service spirit, a sincerecompassion combined with the professional capabilityto help customers, each other, and this community.

Character—Our employees understand that our bankwas built upon and depends upon trust between bankand customer, as well as trust among employees.

Cooperation—Our employees work together as oneteam. We support each other and build customerrelationships together.

Competitiveness—Our employees have a sense of urgency to provide quality servicesand products that meet customers' needs.

Confidence—Our employees have a positive, quiet, can-do attitude based on trainingand expertise. Competence breeds confidence.

of FirstHawaiianBank.OurCore Values.

The

managed account portfoliodesigned to meet individual needs.The program offers an “openarchitecture” approach to give youaccess to some of the bestindependent investment advisors.Priority Invest, a fee-basedinvestment program offered byBancWest Investment Services, givesFirst Hawaiian’s Personal Banking

CUSTOMER RELATIONSHIPS BUILD A RECORD 2006

1

2006 was the most profitable year inFirst Hawaiian Bank's 148-yearhistory, thanks to an employee teamfocused on building customerrelationships. We are Hawai‘i's mostprofitable bank, with net income of$198.5 million, up 15.5% from 2005.

We experienced solid growth in allof our major business lines, and:Assets were up 3.5%.Loans were up 6.2%.Deposits were up 4.0%.Nonperforming assets improved toless than 0.01% of total assets.

Additionally, we continue toreceive the highest independentcredit ratings among Hawai‘i banks.

Founded in 1858, we were theIslands' first successful bank. Weremain first among Hawai‘i banks inassets, deposits, commercial andindustrial loans, vehicle lending, cardtransaction processing, and creditand debit cards issued. Thanks to ahighly motivated and productivestaff of employees, we also remainthe most efficient bank in Hawai'ibased on efficiency ratio rankings.We also moved into first position interms of deposit market shareamong all banks on Guam. And weare first in our commitment to thecommunities we serve.

First Hawaiian Bank is big enoughto help, small enough to care. We areHawai‘i’s largest and strongest bank,backed by a parent company withworldwide resources. Yet we knowthat the key to banking is a personalrelationship with our customers.

Our Innovations in ’06PrivateInvestSM, a new and expandedinvestment advisory programfor Private Banking clients, offerscomprehensive consulting and a

Donald G. Horner

clients professional managed accountselection in world-class mutual funds.Priority Rewards MasterCard. Thisnew credit card lets you earn yourchoice of rewards including cash, giftcertificates and “no black out” travelon any airline.Continental Airlines OnePass® creditcard complements the OnePass®Check Card launched a year ago onGuam and Saipan. First Hawaiian,Hawai‘i’s largest credit card issuer,now has a complete family ofco-branded Continental mileage cards.eStatements. We became the firstbank in Hawai‘i to offer both freeonline checking statements andinstant online images of canceledchecks. eStatements may bedownloaded and filed electronically.Wireless and online card processing.We began offering merchants theability to process transactionswithout hard-wired phone lines.It’s the kind of market leadershipthey expect from the largestHawai‘i-based card processor.Web Cash Manager. We became thefirst bank in Hawai‘i to offerbusinesses a Positive Pay service withcheck image retrieval, reducing fraud.

straight yearof record profits.

FIRST HAWAIIAN BANK NET INCOME

$136.1

$143.6

$171.9

$198.5(Millions)

$125.2

$100

$125

$150

$175

$200

2002 2003 2004 2005 2006

2

DataScan Dealer Access System.We were the first local bank to offerthis new software giving car andtruck dealers online access toinventory information and the abilityto perform online transactions 24/7.Electronic check returns. We werethe first Hawai‘i bank to startsending electronic images of returnedchecks to other financial institutions,reducing customer losses throughfaster collection and notification.Call Center software upgrade. Givesfaster response to your phone calls andeasier access to account data by phone.

Building RelationshipsOn many fronts, we demonstrated thecontinuing success of our strategy tobuild relationships with customers:The Priority Banking PlanSM andPrimeTimeSM, our relationshipbanking packages, continue to growand attract new customers.We continue to be Hawai‘i’s topvehicle lending bank, with more than$1.2 billion in outstanding loans for

As the local leader in cardprocessing, we process cardtransactions for more than 7,500merchant locations.We continue to roll out new, flexibleoptions for first-time homebuyers.Our bank funded $620 million inresidential mortgages during 2006.

More Branch ConvenienceIn this era of exponential growth inelectronic banking, most customers stillprize face-to-face service. We steppedup investments in our convenient branch

In 2007, we will: break ground ona major new facility at Tamuning,Guam, and begin renovations andexpansion at several of our O‘ahuand Neighbor Island branches.

“Outstanding” Community SupportAgain in 2006, the Federal DepositInsurance Corporation (FDIC) ratedFirst Hawaiian “Outstanding” forour performance under theCommunity Reinvestment Act (CRA).We have received this top ratingin every CRA evaluation since 1995.Only 11% of banks evaluated duringthe year by federal regulators wererated “Outstanding.”

The CRA law encourages banks tohelp meet the credit needs of theirentire community, including low-and moderate-income neighborhoods.The FDIC praised us for serving “themost economically disadvantagedareas, low-income individuals andvery small businesses.” The FDICnoted First Hawaiian is a leader in“community development lendingthat helps serve the low-incomepopulation by providing affordablehousing, job creation/retention andbasic human services.”

The FDIC lauded our bank’s“commitment to the betterment of its

system – relocating our Sand Islandbranch to larger quarters; opening a newbranch in fast-growing Wailea, Maui;doubling our size at Gualo Rai, Saipan;and are completing a major renovationof our flagship Waikiki branch.

auto dealer inventory and consumercar and truck purchases.Lockbox operations process corporateremittances. In 2006, First Hawaiianbrought in new lockbox accountsand increased volume by 63%.

credit rating fromS&P, highest amongHawai‘i banks.

growth inloans and leases.

FIRST HAWAIIAN BANK LOANS AND LEASES

(Billions)

$4

$5

$6

$7

$5.0

$5.5

$6.0

$6.4

$5.0

2002 2003 2004 2005 2006

3

Donald G. HornerPresident and Chief Executive Officer

community through charitable giving.”We are indeed proud of our record ofhelping schools, hospitals, churches andsocial agencies. During 2006, our bankand its charitable foundation madecontributions to more than 360 charities.

Hawai‘i Expansion CoolsAfter a sustained 10-year expansion,signs of a slowdown in Hawai‘i’seconomy emerged during 2006, atrend that will likely continue into2007 with flatter visitor arrivals,slower job growth, higher inflationand a cooler housing market.

Tourism: After years of solidgrowth, Hawai‘i visitor arrivalsleveled off in 2006. However, visitorspending rose, a welcome sign.A slower Mainland economy couldrestrain growth in 2007 as well.

Jobs: The rate of job growthdecelerated in 2006, partly due to the

shortage of workers to fill newpositions. The unemployment rate islower than any time since 1990.

Inflation: The Consumer PriceIndex climbed rapidly due to higheroil prices, rising home prices andrents, the labor shortage and higherconstruction material costs. Littlerelief is likely in 2007.

Construction: One of the biggestfactors in the recent boom, constructioncontinues strong. A dip in buildingpermits in early 2006 suggests aslowdown to come, although projectsalready in the pipeline will fuel theindustry for awhile.

Real estate: The decline in sales ofsingle-family homes accelerated andprices began to plateau.

Guam Outlook BrightensThe economic outlook in Guam isbrighter than it has been in years,thanks primarily to a militarybuildup there as U.S. global forcesare redistributed. Guam will see$15 billion in new military spendingto prepare for 11,000 additionalU.S. Marines, Air Force personneland dependents. As a result, thereal estate sector is bouncingback and there is renewed interestin development.

��First Hawaiian Bank welcomedto our Board of Directors twodistinguished leaders – retiredGeneral Eric K. Shinseki,a Kaua‘i native and former Chief ofStaff of the U.S. Army, andFrançois Dambrine, Head of U.S.Retail Banking for BNP Paribas.We also mourn the loss of twolong-time directors who passedaway during 2006 — businessexecutives J.W.A. (Doc) Buyers andR. Dwayne Steele.

��Our bankers today, like theirpredecessors in the 19th and 20thcenturies, say “Yes” to exceptionalservice, to caring for each otherand to building relationshipsthat help our customers succeed.This “Yes spirit” has made ussuccessful and will continue to beour guiding principle.

We say Yes. Three simple words.One simple promise.

Billion

in outstanding loansfor dealers and vehiclebuyers, amongHawai‘i banks.

Billion

in total assets,among Hawai‘i banks.

4

FINANCIAL HIGHLIGHTS

(dollars in thousands) 2006 2005

FOR THE YEAR:Net income $ 198,534 $ 171,923Return on average tangible assets 1.88% 1.74%Return on average tangible stockholder’s equity 17.30% 16.94%

AT YEAR END:Total assets $ 12,002,615 $ 11,596,150Loans and leases 6,367,386 5,987,472Deposits 8,917,189 8,574,487Stockholder’s equity 2,238,235 2,115,671

YEAR-END FINANCIAL RATIOS (AT DECEMBER 31):Allowance for credit losses to total loans and leases 1.43% 1.47%Nonperforming assets to total assets (1) 0.01 0.02Net loans and leases charged off to average loans and leases .21% .19%

(1) Nonperforming assets consist of nonperforming loansand leases and other real estate owned.

CREDIT RATINGS STANDARD MOODY’S FITCH& POOR’S

First Hawaiian Bank uninsured CDs: Long-term A+ Aa3 AAShort-term A-1 P-1 F1+

(Ratings as of December 31, 2006)

Billion

in total deposits,among Hawai‘i banks.

FIRST HAWAIIAN BANK TOTAL DEPOSITS

(Billions)

$4

$6

$8

$10

$7.7

$8.6$8.9

$6.7

2002 2003 2004 2005 2006

$7.1

4.47%

4.12%4.30%

4.51%4.70%

2%

3%

4%

5%

2002 2003 2004 2005 2006

FIRST HAWAIIAN BANK NET INTEREST MARGINFIRST HAWAIIAN BANK RATIO OFNONPERFORMING ASSETS TO TOTAL ASSETS

0.0%

0.5%

1.0%

0.11% 0.11%0.02% 0.01%

0.73%

2002 2003 2004 2005 2006

FIRST HAWAIIAN BANK RATIO OF NET LOANS & LEASESCHARGED OFF TO AVERAGE LOANS & LEASES

.20%

.10%

.30%

.40%

.30%

.23%

.19%.21%

.35%

2002 2003 2004 2005 2006

(Billions)

$9.9

$10.6

$11.6$12.0

(Billions)

$9.2

$8

$10

$12

2002 2003 2004 2005 2006

FIRST HAWAIIAN BANK TOTAL ASSETS

(UNAUDITED)

5

BANKING FOR BUSINESS

FOR ANY BUSINESSBusiness Banker: A knowledgeableprofessional to work with you.62 Convenient Branches in Hawai‘i,Guam and Saipan.FHB Business OnLine: Securedonline access to your accounts.Web Cash Manager: A bank in yourown computer, with 24-hour accessto real-time account balances.Payroll ServicesRetirement PlansInvestment ManagementBusiness Savings and CheckingTime DepositsEmployee 401(k) PlansPrivate Banking for Senior ManagementOffice and EquipmentFinancing/LeasingTrust and Investment ServicesSuccession PlanningInsurance: Protect your business byprotecting yourself and your people.

IT’S IN THE CARDSCredit /Debit Card Acceptance:Hawai‘i’s largest (and only locally-based) merchant processing.Business Credit Cards: A family ofcards to manage expenses.Business CheckCards: Convenienceof a credit card with transactionsposted to your checking account.Aloha Business AirAwards Visa®Card: 1 mile for every $1.Continental OnePass® BusinessCard: 1 mile for every $1.Continental OnePass® BusinessCheck Card (Guam /Saipan): Payeveryday expenses while earning miles.

FOR MID-MARKET &LARGER BUSINESSESCash Management: Collectionand disbursement services, sweepaccounts and more.Captive Insurance: Serving captiveinsurance companies longer thanany other Hawai‘i bank.Commercial Banking: ServingHawai‘i’s “Top 150” companies.Commercial Real Estate LendingConstruction FinancingAccounting Support Services:Controlled disbursement, checkimage CD-ROM, ACH debit block,account reconcilement.

Bill Payment Services:Pre-authorized payments(ACH debits), lockbox services.Lines of CreditTerm LoansCondo Association LendingElectronic Bill Presentmentand PaymentTrade Finance:Commercial letters of credit.FHB PremierSweep: Daily sweeps froma First Hawaiian checking accountinto an interest-bearing account withno limits on withdrawals.(PremierSweep balances are notcovered by FDIC insurance.)

VEHICLE FINANCINGVehicle Inventory Financing:We have long been the largestvehicle flooring lender in Hawai‘i.

FOR SMALL BUSINESSESPriority Banking for Business Plan:Discounts and premiums to rewardsmall business for your deposits,loans or both.Business FirstLine Loans, BusinessFirstLine of CreditSBA, FHA and HEDCO (HawaiiEconomic Development Corp.) Loans

Billion

in card transactionsprocessed for 7,529merchants,among Hawai‘i banks.

Million

in small business loans.

6

BANKING FOR CONSUMERS

The Priority Banking PlanSM:Exclusive membership program thatrewards you with discounts onloans and fees, premium depositrates, preferred credit lines andmore — based on the total amountof personal banking you do with us.Personal Banker: A financial profes-sional to assist qualified customers.Your liaison to a wide menu ofresources, from traditional bankingto trust, investments and insurance.FHB OnLineSM: Bank whenever,wherever there’s Internet access. Getaccount information, transfer fundsand pay bills 24/7. First bank inHawai’i to offer free Internet accessto images of cleared checks.Approvals in SecondsSM: We’re theonly Hawai‘i bank that can give youinstant answers to personal loanrequests when you apply online (atfhb.com) or at one of our branches.Savings Account: Whether you’resaving for a home or car, retirementor school tuition, we offer a varietyof programs.Checking Accounts:Choose from a variety of personalchecking accounts.

Individual Retirement Accounts(IRA): Put all your retirement fundsunder one roof.PrimeTimeSM (Hawai‘i) and Primera(Guam/Saipan): Age 50 or better?PrimeTime offers free and discountedbanking services, plus special eventsand merchant discounts.

Retail Investment Brokerage: BWISInvestments offices in our branchescan help you plan for a secureretirement, regardless of age.Credit & Debit Cards: No. 1 issuerof Visa® and MasterCard® productsin Hawai‘i. With our popular AlohaAirAwards Card, you earn 1.5 milesfor every $1 spent.OnePass® CheckCard and CreditCard: Cards for Guam andSaipan residents that earn mileson Continental Airlines.

Mortgage Lending: Finance —or refinance — the family home, oran investment property. FirstHawaiian services over $4.3 billionin mortgage loans for homeowners inHawai‘i, Guam, Saipan and theWestern Mainland U.S.Equity FirstLine: Revolving creditline based on your home equity.Car and Truck Lending: Top lender toconsumers in Hawai‘i for more thantwo decades.PayAnyDay® Personal Loans:Borrow a fixed amount for a specificpurpose, including bill consolidation,school tuition and more.Personal FirstLine Plus: A line ofcredit for homeowners with flexibleloan-to-value criteria and possibletax benefits.

Personal FirstLineSM of Credit:A revolving credit line that givesyou flexible borrowing power, withno collateral required.Student Loans: A variety of bankand government financing plans tohelp bring the cost of an educationwithin reach.

in residential mortgagesfunded in 2006.

Million

ATMs for our customers,including blanket coverageof major shopping malls.

7

Trust administration, custodial accounts,trust real estate management.Private Bankers assist a select groupof high net worth individuals, entre-preneurs, professionals and executiveswith their unique financial needs.Work with one primary contact tocoordinate banking, trust/estateplanning, insurance, investments.Bishop Street Capital Management:Customized investment managementfor private individuals, corporationsand institutional clients.

An experienced team of investmentprofessionals with solid track records.Insurance: Our Private AdvisoryServices Department acts as a broker,selecting from highly rated insurersto find you the best life, disability orlong-term care policy at the mostcompetitive price.Investment Management AccountPlus (IMA Plus): Advisory service tohelp achieve your investment goalsthroughout your lifetime.

top U.S. investmentmanagers are available toPrivateInvestSM clients.

Our New Approach forYour Investment NeedsPrivateInvestSM offers Private Bankingclients comprehensive consulting anda managed account portfolio designedto meet your individual needs. A FirstHawaiian Wealth ManagementAdvisor works with a select group ofindependent investment advisors andyour Private Banking Officer toachieve your investment objectives.PrivateInvest’s “open architecture”approach gives you access to some ofthe best investment managers fromacross the nation.

First, we evaluate your investmentgoals, time horizon and risktolerance, then help you develop asound strategy for asset allocation,diversifying your investments acrossdifferent asset types. Asset allocationhelps optimize your investmentreturn potential, while reducingoverall risk and offering protectionagainst dramatic market fluctuations.

The Mainland and Hawai‘i-basedmanagers selected for PrivateInvestare some of the most highly respectedin the industry across a variety ofinvestment categories. They serve

large institutional investors as wellas wealthy individuals. Most of thesemanagers require a minimuminvestment of over $10 million.However, because of our relationshipwith them, First Hawaiian Bankclients can participate with muchlower minimums.

WEALTH MANAGEMENT

The mission of First Hawaiian’s WealthManagement Group is to act as atrusted advisor to help clients grow,protect and transfer assets to futuregenerations. First Hawaiian hasfinancial stability, 148 years of experi-ence and a broad menu of customizedand exclusive investment and trustsolutions. The average investmentprofessional on our team has 17 yearsof financial industry experience.

We have $4.0 billion in assets undermanagement and administer or act ascustodian for more than $10.5 billion.Priority Invest, a fee-based programoffered by BWIS Investments forPersonal Banking clients, gives youprofessional managed accountselection in world-class mutual fundsaccording to your personalizedinvestment strategy. Based on yourasset allocation and in-depthanalyses of thousands of mutualfunds, we provide a customizedselection of no-load and load-waivedmutual funds for your portfolio.Institutional Banking: Decades ofexperience serving large public andprivate institutional clients —foundations, endowments, hospitals,schools and corporations.Taft-Hartley: We’ve been helpinglabor unions longer than any othertrust company in Hawai‘i. We handle$2.5 billion of union fund assets.Employee Benefit Plans: Trustee forcorporate employee plans.Private Advisory Services:Coordinated, expert service inbusiness planning, personal financialand estate planning and insurance(including life insurance, long-termcare and disability income).Personal Trust Services: As acorporate trustee, we can help youbuild, manage and protect your wealthwhen you put your assets in trust.

8

COMMUNITY SERVICE

Working Together for aHawai‘i No– Ka‘OiWe at First Hawaiian Bank andFirst Hawaiian Bank Foundationare proud of what we do to helpimprove life in the communities

First Hawaiian’s generosity hashelped by solving tough problems,extending opportunities for youngand old, and enriching livesthroughout Hawai‘i, Guam andSaipan. Every day, thanks to one

Our priority is providing brighterfutures for our youth. That’s whyFirst Hawaiian Bank is playing a keyrole in fund-raising efforts for TheSalvation Army’s Ray & Joan KrocCorps Community Center, which willbenefit families throughout LeewardO‘ahu. We also supported Teach forAmerica, which recruits top collegegraduates nationwide and this yearplaced 53 young teachers in low-income Hawai‘i schools strugglingwith vacancies.

In the spirit of lokomaika‘i, orgiving, our employees also stepforward without hesitation. Theygenerously contributed nearly$550,000 to United Way campaigns.And they also pitch in with time andtalent, such as the board leadershiproles listed below. And when thecommunity needs volunteers, our‘ohana says Yes!

Offering LeadershipFor Nonprofit BoardsFirst Hawaiian Bank employeesserve on the boards of directorsof nearly 100 non-profits andcharities, including:

‘Aha Pu–nana LeoAloha HarvestAmerican DiabetesAssociation – Hawai‘iAmerican Red CrossArthritis Foundation of Hawai‘iBig Brothers/Big Sisters of HonoluluBlood Bank of Hawai‘iBoys & Girls Club of HonoluluCatholic Charities Hawai‘iChaminade University

Chamorro Land Trust CommissionChild & Family ServiceChildren’s Discovery CenterCoalition for a Drug-Free Hawai‘iEaster Seals of Hawai‘iFriends of Hawai’i CharitiesFriends of ‘Iolani PalaceGirl Scouts of AmericaGoodwill IndustriesHabitat for HumanityHale KipaHawai‘i Community FoundationHawai‘i FoodbankHawai‘i LiteracyHawai‘i Opera TheatreHawai‘i Theatre CenterHawai‘i Youth Opera ChorusHilo Medical Center Foundation

Hina MaukaJunior AchievementKaua‘i Medical ClinicMa–noa Valley TheatreMarch of DimesMaui FoodbankNorth Hawai‘i HospicePrevent Child Abuse Hawai‘iPublic Schools ofHawai‘i FoundationSamoan ServiceProviders AssociationSpecial Olympics Hawai‘iUnited WayWai‘anae Coast ComprehensiveHealth CenterWilcox Health FoundationYMCA

of these agencies, a child discoversuntapped potential and begins tochart a dream. A young mother takesa step closer to a college degreeand a future. A family finds supportto have a home of their own.

where we live and work. During2006 we financially supported thework of 360 charitable agencies,providing assistance for health,education, human services, religious,culture and arts programs.

charities receivedcontributions from FirstHawaiian and its foundation.

9

FINANCIAL DATA

Cash and due from banks $ 358,973 $ 368,195Interest-bearing deposits in other banks 2,269 122,789Federal funds sold and securities

purchased under agreements to resell 804,000 789,000Investment securities 2,806,600 2,460,983Loans and leases: Loans and leases 6,372,834 5,998,867Loans and leases: Less allowance

for credit losses 91,337 88,453

Net loans and leases 6,281,497 5,910,414

Intangible assets, net 1,013,957 1,016,578Other assets 735,319 928,191

TOTAL ASSETS $12,002,615 $ 11,596,150

DepositsDomestic • Interest-bearing $ 7,888,274 $ 7,511,743Domestic • Noninterest-bearing 352,227 449,296Foreign 676,688 613,448

Total deposits 8,917,189 8,574,487

Short-term borrowings 453,168 347,400Other liabilities 393,932 483,498Long-term debt 91 75,094

Total liabilities 9,764,380 9,480,479

Total stockholder’s equity 2,238,235 2,115,671

TOTAL LIABILITIES ANDSTOCKHOLDER’S EQUITY $ 12,002,615 $ 11,596,150

December 31,

(in thousands) 2006 2005

Condensed Consolidated Statements of Income (UNAUDITED)

Year Ended December 31,

(in thousands) 2006 2005

Net interest income $ 438,033 $ 383,720Provision for credit losses 15,550 16,100

Net interest income afterprovision for credit losses 422,483 367,620

Service charges on deposit accounts 37,367 36,684Trust and investment services income 26,794 27,712Other services charges and fees 60,359 55,194Securities losses, net (407 (438Other 23,019 22,307

Total noninterest income 147,132 141,459

Salaries and employee benefits 138,404 117,526Occupancy expense 19,252 17,375Intangible amortization 2,672 2,672Equipment expense 13,847 16,021Other 84,124 81,578

Total noninterest expense 258,299 235,172

Income before income taxes 311,316 273,907Provision for income taxes 112,782 101,984

Net income $ 198,534 $ 171,923

Condensed Consolidated Balance Sheets (UNAUDITED)

LIABILITIESANDSTOCKHOLDER’SEQUITY

ASSETS

NONINTERESTINCOME

NONINTERESTEXPENSE

NET INTERESTINCOME

NET INCOME

in deposits on Guam,among banks in

that U.S. Territory.

Thousand

Over

credit and debit cardsissued, amongHawai‘i banks.

) )

Million

10

SENIOR MANAGEMENT COMMITTEE

LEFT TO RIGHT:

EXECUTIVE VICE PRESIDENTS

William E. AtwaterGeneral Counsel & Secretary

Brandt G. FariasMarketing Communications

Mark H. FelmetConsumer Lending Group

LEFT TO RIGHT:

EXECUTIVE VICE PRESIDENTS

Robert T. FujiokaCommercial Banking &

Wealth Management Group

Robert S. HarrisonChief Risk Officer

Robin S. MidkiffPrivate Banking

LEFT TO RIGHT:

EXECUTIVE VICE PRESIDENTS

Raymond S. OnoMain Banking Region/

Business Banking

Edward Y.W. PeiConsumer Banking Group

Sheila M. SumidaHuman Resources

LEFT TO RIGHT:

VICE CHAIRMEN

Gary L. CaulfieldInformation Management &

Operations Group

Anthony R. Guerrero, Jr.Retail Banking Group

Albert M. YamadaChief Financial Officer

PRESIDENT & CEODonald G. Horneraverage

bankingexperienceof SeniorManagementCommittee.

Years

employees,one of Hawai‘i’s largest employers.

11

SENIOR OFFICERS

First Hawaiian Bank

Executive Vice Presidents

Linda B. C. FujitaniCredit Administration

Corbett A.K. KalamaO‘ahu Region Office

Steve J. WilliamsKapi‘olani Banking Region

Senior Vice Presidents

Benjamin K. AkanaMain Banking Region

Gina O. W. AnonuevoGeneral Auditor

Alan H. ArizumiCorporate Banking

Alan P. ArmstrongPersonal Trust

Craig S. AvellarBancWest InvestmentServices - Hawaii

Joyce W. BorthwickChief Compliance Officer

Sharon S. BrownSales, Service & Training

Ward B. BrownPrivate Banking

Joy P. CabildoResidential Real Estate

Winston K.H. ChowHawai‘i Region Office

Michael A. CoatesTransaction Management

John C. ColtrinWestern Region Dealer Center

Laura-Lynn V. DacanayGuam & CNMI Region Office

Thomas W. Dixon, Jr.Credit Administration

Koren K. DreherPrivate Banking

Melvin T. FreitasHawai‘i Dealer Center

John S. FujimotoDeputy General Auditor

Brent E. HelgesonHawai‘i Dealer Center

Dennis H.K. HuO‘ahu Region Office

Edmund H. KajiyamaBranch Support

Dale T. KobayashiWealth & Asset Management

Kent R. LauMain Banking Region

Iris Y. MatsumotoHuman Resources

Kristi L. MaynardTreasurer

James (Kimo) MillsService Delivery

Melvin W.Y. MowCredit Administration

Kenneth C.S. PaiTrust Real Estate Services

Bryan I. ShigezawaTreasury & Investment

Guy J. ShindoAsset Lending

Craig T. SmithAppraisal Services Center

Brian N. SunadaCommercial Real Estate

Carl Y. TadakiKapi‘olani Banking Region

Mark S. TaylorWealth Management Service Center

Michael G. TaylorPrivate Advisory Services

Gordon M. UechiLegal

Bishop StreetCapital ManagementCorporationDonald G. HornerChairman &Chief Executive Officer

Robert T. FujiokaVice Chairman

Michael K. HiraiPresident &Chief Investment Officer

Senior Vice Presidents

Kenneth L. Miller

Ryan S. Ushijima

Michael J. MurakoshiKaua‘i Region Office

Keith H. NagataBusiness Services

Mitchell E. NishimotoMaui Region Office

Glen R. OkazakiController’s

Kathryn K. OkazakiCredit Services Center

Carol M. OnoOperations Researchand Development

Curt T. OtaguroCard Services

Glenn N. WachiKapi‘olani Banking Region

Donald P. YannellWaikiki Branch

First HawaiianLeasing, Inc./FHL LeaseHolding Co., Inc.Donald G. HornerChairman & Chief Executive Officer

Keethe T. KoyanagiPresident

Brian Y. C. LauSenior Vice President

12

BOARD OF DIRECTORS

Walter A. Dods, Jr. •Chairman of the Board,

BancWest Corporation andFirst Hawaiian Bank

Trustee, Estate of S. M. Damon

Dr. Julia Ann FrohlichPresident Emeritus,

Blood Bank of Hawaii

Michael K. FujimotoPresident & Chief Executive Officer,

Hawaii Planing Mill, Ltd.

Paul Mullin GanleyTrustee, Estate of S. M. DamonPartner, Carlsmith Ball LLP

Warren H. HarukiPresident & Chief Executive Officer,

Grove Farm Company, Inc.Trustee, Parker Ranch Foundation TrustPresident (Retired), Verizon Hawaii Inc.

Robert P. HiamPresident & Chief Executive Officer,

Hawaii Medical Service Association

John A. HoagChairman, Hawaii Reserves, Inc.President (Retired),

First Hawaiian Bank

Donald G. Horner •President & Chief Executive Officer,

First Hawaiian BankExecutive Vice President,

BancWest Corporation

David C. HuliheePresident & Treasurer,

Royal Contracting Company, Ltd.

• Also a member of the BancWest CorporationBoard of Directors

Wesley T. ParkPresident,

Maunawili Consulting LLC

Eric K. ShinsekiGeneral, U.S. Army (Retired)

John K. TsuiChairman,

Towne Development of Hawaii, Inc.Vice Chairman & Chief Credit Officer

(Retired), BancWest CorporationPresident & Chief Operating Officer

(Retired), First Hawaiian Bank

Allen B. UyedaPresident & Chief Executive Officer,

First Insurance Company of Hawaii, Ltd.

Jenai Sullivan WallChairman & Chief Executive Officer,

Foodland Super Market, Ltd.

James C. WoChairman,

Bojim Investments, Inc.

Robert C. WoPresident & Secretary,

BJ Management CorporationChairman, C. S. Wo & Sons, Ltd.

in commercial andindustrial loans,among Hawai‘i banks.

Billion

Robin K. CampanianoPresident & Chief Executive Officer,

AIG Hawaii Insurance Company, Inc.

François Dambrine •Head of Retail Banking in the U.S.A.,

BNP Paribas

W. Allen DoaneChairman & Chief Executive Officer,

Alexander & Baldwin, Inc.

Dr. Richard R. KelleyChairman of the Board,

Outrigger Enterprises, Inc.

Bert T. Kobayashi, Jr. •Senior Partner,

Kobayashi, Sugita & Goda

Faye Watanabe KurrenPresident & Chief Executive Officer,

Hawaii Dental Service

Dee Jay A. MailerChief Executive Officer,

Kamehameha Schools

Dr. Richard T. MamiyaHeart Surgeon (Retired)

Dr. Fujio MatsudaPresident Emeritus,

University of Hawai‘i

Leighton S. L. MauPresident & Chief Operating Officer,

Waikiki Business Plaza, Inc.

Don J. McGrath •President, Chief Executive Officer &

Chairman of Executive Committee,BancWest Corporation

Chairman & Chief Executive Officer,Bank of the West

assets undermanagement or custody.

Billion

BRANCHES OF FIRST HAWAIIAN BANK

O‘AHU (34)

Honolulu:Aina Haina Aina Haina Shopping CenterChinatown 2 North King StreetDowntown-Main 999 Bishop StreetEaton Square 438 Hobron LaneHawai‘i Kai 7110 Kalaniana‘ole HighwayHickam AFB 30 Hickam Court #1Kahala 1348 Hunakai StreetKaimuki 3599 Wai‘alae AvenueKalihi 2250 North King StreetKapahulu 433 Kapahulu AvenueKapi‘olani 1580 Kapi‘olani BoulevardKing-Liliha 445 North King StreetLiliha 1420 Liliha StreetMakiki 1111 South Beretania StreetMa–noa Ma–noa MarketplaceMoanalua 1000 Mapunapuna StreetSand Island 120 Sand Island Access RoadUniversity 2411 South King StreetWaikı̄kı̄ 2181 Kalakaua AvenueWard 250 Ward Avenue

Windward O‘ahu:Kahuku Kahuku Sugar Mill Shopping CenterKailua 705 Kailua RoadKane‘ohe Windward City Shopping CenterKane‘ohe Bay 46-047 Kamehameha Highway

Central /Leeward O‘ahu:Ewa Beach ‘Ewa Beach Shopping CenterHale‘iwa 66-135 Kamehameha HighwayKapolei 590 Farrington HighwayMililani Mililani Shopping CenterPearl City 890 Kamehameha HighwayPearlridge 98-1071 Moanalua RoadSchofield Barracks Building 3321Wahiawa 730 California AvenueWai‘anae 86-020 Farrington HighwayWaipahu 94-205 Leoku Street

HAWAI‘I (8)

Hilo (2) Hilo Shopping Center120 Waianuenue Avenue

Honoka‘a 45-3538 Mamane StreetKamuela Kamuela Shopping CenterKealakekua 81-6626 Mamalahoa HighwayKona 74-5593 Palani RoadPahoa Government Main RoadWaikoloa Waikoloa Highlands Center

MAUI (7)

Kahului 20 West Ka‘ahumanu AvenueKihei Lipoa Shopping CenterLahaina 215 Papalaua StreetNapili 5095 Napilihau StreetPukalani 67 Makawao AvenueWailea 161 Wailea Ike PlaceWailuku 27 Market Street

KAUA‘I (7)

Hanapepe-Ele‘ele Ele‘ele Shopping CenterKapa‘a 4-1366 Kuhio HighwayKoloa 3506 Waikomo RoadKukui Grove Kukui Grove Shopping CenterLihu‘e 4423 Rice StreetPrinceville 5-4280 Kuhio HighwayWaimea 4525 Panako Road

LANA‘I (1)

Lana‘i City 644 Lana‘i Avenue

GUAM (3)

Dededo Compadres MallMaite 400 Route 8Tamuning 353 Chalan San Antonio Road

SAIPAN (2)

Gualo Rai Gualo Rai Commercial CenterOleai Oleai Center, Chalan Laulau

HAWAI‘I GUAM

Hagåtña

SAIPAN

Printed on Recyclable Paper

convenientbranches inHawai‘i, Guamand Saipan.

KAUA‘I O‘AHU

MAUI

LANA‘I

HAWAI‘I

Kailua

WailukuHonolulu

Lana‘i City

Lihu‘e

Hilo

Kailua Kona

‘