First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Investor Presentation (March 2019)
24 slides from First Hawaiian's investor presentation, Mar 4, 2019
Slide 1: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements relating to the estimated 2019 earnings accretion and p
Slide 2: BNP Paribas Sold Final 18.4% Stake in First Hawaiian
2 Source: Public filings BNP Paribas Sold Final 18.4% Stake In First Hawaiian on February 1, 2019 Regulatory and Governance Implications Highlights Events Subsequent to the BNPP Sell-Down BNP Paribas sold all remaining shares in first hawaiian, inc FHI is no longer controlled by BNPP for purposes of
Slide 3: Q4 2018 Highlights
Q4 2018 HIGHLIGHTS Core measurements are non-GAAP financial measurements. Core excludes certain gains, expenses and one-time items. See non-GAAP reconciliations of core net income, core diluted EPS, and core efficiency ratio to the comparable GAAP measurements in the appendix of this slide presentat
Slide 4: January 2019 Investment portfolio restructuring
January 2019 Investment portfolio restructuring 4 Helps unlock earning potential of the balance sheet Improves overall yield on investment portfolio by ~ 25 bps Improves asset/liability profile New securities barbelled with mix of fixed and floating securities Shorter duration provides protection ag
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 5 Best-in-class Financial Performance Leading Position In Attractive Market High Quality Balance Sheet With Steady Growth Realized And Forecasted Proven Through The Cycle Performance Well-Capitalized With Healthy Dividend BNPP’s Exit To Improve Clarity On Capital Distribution 1
Slide 6: Best-in-Class Franchise
NALs / Loans 170/30/39 251/177/36 126/34/38 0/170/167 119/176/227 227/227/227 R:79 G:129 B:189 Best-in-Class Franchise 6 Branch Presence Financial Overview – 4Q 2018 YTD ($ billions) Source: Public filings and SNL Financial as of 4-Feb-2019 Note: Financial data as of 31-Dec-18. Market data as of 4-F
Slide 7: Hawaii is an Attractive Market with Strong Economic Backdrop
Hawaii is an Attractive Market with Strong Economic Backdrop 7 Real GDP ($ billion) Population (000s) Source: Hawaii Department of Business, Economic Development & Tourism, Bureau of Labor Statistics, Bureau of Economic Analysis, Federal Housing Finance Agency, and SNL Financial as of 30-Jan-19 Note
Slide 8: The Clear Leader in Hawaii
The Clear Leader in Hawaii 8 The banking market in Hawaii is dominated by local banks with the top 6 banks accounting for ~97% of deposits; First Hawaiian is the clear leader among its Hawaii banking peers based on size and operating performance Sources: SNL Financial, FDIC, SEC and company filings.
Slide 9: NIM well positioned from strategic balance sheet management
NIM well positioned from strategic balance sheet management and rational market 9 NIM Increased 24 bp in 2018 Proactive Balance Sheet Management , Favorable Deposit Market Source: Public filings and SNL Financial as of 4-Feb-19 Note: $10–$50bn banks constituted as of 31-Dec-17; excludes merger targe
Slide 10: Strong Performance Through the Cycle
Source: Public filings and SNL Financial as of 4-Feb-19 Note: Financial data as of 31-Dec-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB ratios shown as core. Core excludes certain gains, expenses and one-time items. See annual and quarterly non-GAAP reconciliations of
Slide 11: Consistent Track Record of Strong Profitability
Consistent Track Record of Strong Profitability 11 Source: Public filings and SNL Financial, as of 4-Feb-2019 Note: Financial data as of 31-Dec-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB measures shown as core. Core excludes certain gains, expenses and one-time ite
Slide 12: Strong Dividend Payout Ratio, Opportunities for Additional Capital Distributions
y STRONG DIVIDEND PAYOUT RATIO, a OPPORTUNITIES FOR ADDITIONAL CAPITAL Five Hewallan, ie. DISTRIBUTIONS’ Robust Capital Position Attractive Dividend Yield ser? 37% nett a 130% 26% 10% First Hawaian, ne. Public US. Banks wih $10$500n of Assets Dividend pope oes 27% Dividend Per Share 116% sh, nw oh S
Slide 13: Full Suite of Products and Services
Full Suite of Products and Services 14 Largest commercial lender in Hawaii 58 commercial bankers(2) Relationship-based lending Primary focus on Hawaii, additional focus on California C&I, leases, auto dealer flooring, CRE, and C&D Strong relationships with proven local real estate developers $13.6 b
Slide 14: Growing, Low-Cost Core Deposit Base
Growing, Low-Cost Core Deposit Base Strong brand, deep ties to the community and a leading market share position have driven an attractive, low-cost deposit base 15 CAGR: 5.5% Deposits: $17.2bn 4Q18 Deposit Cost: 0.48% Year Ended December 31 Deposit Portfolio Composition Consistent Deposit Growth ($
Slide 15: Steady Organic Growth and Balanced Loan Portfolio
Steady Organic Growth and Balanced Loan Portfolio Steady through the cycle organic loan growth and balanced loan portfolio with attractive forward growth opportunities 16 Well positioned to serve clients during the financial crisis CAGR: 6.2% Loans: $13.1bn 4Q18 Loan Yield: 4.22% Loans / Deposits 70
Slide 16: Proven, Consistent, and Conservative Credit Risk Management
Proven, Consistent, and Conservative Credit Risk Management Strong through the cycle credit performance driven by conservative approach to credit risk management 17 Year Ended December 31 Year Ended December 31 Year Ended December 31 Year Ended December 31 Source: Public filings and SNL Financial, a
Slide 17: Demonstrated history of disciplined expense management
Demonstrated history of disciplined expense management 18 Source: Public filings and SNL Financial, as of 4-Feb-19 Note: Financial data as of 31-Dec-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB measures shown as core. Core excludes certain gains, expenses and one-tim
Slide 18: Hawaii Banks have a Significant Deposit Advantage
Source: SNL Financial and the Federal Reserve website, as of 4-Feb-2019 (1) Deposit beta is defined as the change in deposit costs as a percentage of the change in Fed Funds over a particular period. Deposit cost uses starting point (2Q04) to peak (3Q07); one quarter lag. (2) Includes First Hawaiian
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to non-gaap reconciliations We present net interest income, noninterest income, noninterest expense, efficiency ratio, net income, basic and diluted earnings per share and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measu
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-gaap reconciliation 21 (1) Annualized for the three months ended December 31, 2018, September 30, 2018, and December 31, 2017 Balance Sheet Data: Total stockholders' equity $ 2,524,839 $ 2,423,462 $ 2,532,551 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,529,34
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-gaap reconciliation 22 The Company reached an agreement in principle to resolve a putative class action lawsuit alleging that the Bank improperly charged certain overdraft fees. In connection with the anticipated settlement agreement, the Company recorded an expense of approximately $4.1
Slide 22: GAAP to Non-GAAP Reconciliation - Annual
GAAP to Non-GAAP Reconciliation - annual 23 Note: Totals may not sum due to rounding. As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $ 264.4 $ 183.7 $230.2 $213.8 $216.7 $214.5 $211.1 $199.7 Basic EPS
Slide 23: GAAP to Non-GAAP Reconciliation - Annual
GAAP to Non-GAAP Reconciliation - annual 24 Note: Totals may not sum due to rounding. Noninterest income and expenses prior to 2017 have been revised from the amounts previously reported to reflect the reclassifications described in the footnote to Table 1 of the fourth quarter 2017 earnings release
Slide 24: GAAP to Non-GAAP Reconciliation - Annual
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