2022 ASB Environmental, Social and Governance Report

THRIVING ECONOMY

INVESTING IN AFFORDABLE HOUSING

FINANCING AFFORDABLE HOUSING FOR COMMUNITIES IN NEED ASB is one of the few local lenders participating in the U.S. Department of Housing and Urban Development’s Section 184A Native Hawaiian Housing Loan Guarantee program, which will increase the financing options for Department of Hawaiian Home Lands (DHHL) beneficiaries. With nearly 30,000 Native Hawaiians on the waitlist for homes, we are committed to providing financial support and resources to help these families make their homeownership dreams possible. Our partnership with Hawaiian Community Assets will help to provide financial literacy to beneficiaries to elevate their financial education. The nonprofit operates financial opportunity centers statewide providing financial counseling, income support and employment and entrepreneurship coaching to low- and moderate income households and communities. Just steps away from the ASB Campus, Halewaiolu Senior Residences is an affordable housing project that will provide 156 living spaces to seniors in the surrounding Chinatown community. The project began in 2021 with ASB’s investment of $20.4 million and is estimated to be completed in 2023.

• $9.2 million in Kaiaulu O Waikoloa , a multi-family apartment development in Waikoloa, Hawaii Island, with 60 units for residents with a 30-60% AMI • $8.3 million in Kaiaulu O Halelea , a multi-family rental community in Kihei, Maui, that will offer 56 living units to residents with a 30-60% AMI • $9.3 million in Kaiaulu O Kukuia , an affordable workforce housing development in Lahaina, Maui, consisting of 100 two-bedroom, 75 three-bedroom and 25 four-bedroom units for residents earning 30-60% AMI • $20.4 million in Halewaiolu Senior Residences , a new construction with 156 units in the heart of Downtown Honolulu We are also a major supporter of the Hawai‘i Community Foundation’s House Maui Initiative, a program designed to expand access to affordable housing in Maui County. In 2019 ASB’s primary regulator, the Office of the Comptroller of the Currency (OCC), recognized ASB’s “excellent level of qualified community development investments” on Oahu, Kauai and Hawaii Island.

According to the latest ALICE ® (Asset Limited, Income Constrained, Employed) Report, published by Aloha United Way, the number of people living in poverty in Hawaii grew from 9 percent in 2018 to 15 percent in 2022. ALICE refers to those who have income above the federal poverty line but not enough to afford the basic household survival budget in Hawaii. Sadly, about 44 percent of Hawaii’s population falls into this category. Purchasing a home in Hawaii is no simple feat and more kamaaina (residents of Hawaii) are finding it challenging to remain in the islands with the high cost of living. According to the Honolulu Board of Realtors, the median price of a single-family home on Oahu soared to $1,105,000 in December 2022, an 11.6% increase from the previous year. It’s more important than ever for us to encourage, support and invest in affordable housing in Hawaii and provide more quality living spaces for ohana (families), keiki (children) and kupuna (seniors). Currently, ASB has investments in more than 25+ low-income housing projects in Hawaii including:

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