First Hawaiian Bank violated its fiduciary obligations when it lost money on investments in mortgage-backed securities for some trust accounts, a senior official said.

That's why the $7.3 billion-asset institution, Hawaii's second largest, is reimbursing clients for the losses, said vice chairman Jack A. Hoag.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.