First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Q3 2024 Earnings Presentation
19 slides from First Hawaiian's earnings presentation, Oct 25, 2024
Slide 1: 3rd Quarter 2024 Earnings Call
3rd Quarter 2024 Earnings Call October 25, 2024 0
Slide 2: Forward-Looking Statements
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 reflect our current views with respect to, among other things, future events and our financial performance. Th
Slide 3: Q3 2024 Financial Highlights
Q3 2024 FINANCIAL HIGHLIGHTS1 • Net income $61.5 mm Q3 2024 Q2 2024 • Total loans and leases decreased $118.5 mm Net Income ($mm) $61.5 $61.9 Diluted EPS $0.48 $0.48 • Total deposits decreased $91.1 mm Net Interest Margin 2.95% 2.92% • Cost of deposits: 1.71% Efficiency Ratio 59.8% 59.2% • Total cos
Slide 4: Q3 2024 Balance Sheet Highlights
Q3 2024 BALANCE SHEET HIGHLIGHTS $ in millions 9/30/24 6/30/24 Assets Q3 Highlights Cash and Cash $ 1,072.8 $ 1,114.8 • Continued to use low-yielding investment Equivalents1 portfolio run off to fund loan growth / reduce Investment Securities high-cost deposits 2,056.0 2,068.0 - AFS Investment Secur
Slide 5: Loans Impacted by Payoffs
LOANS IMPACTED BY PAYOFFS Total Loans and Leases 9/30/24 vs 6/30/24 Net Changes ($ millions) ($ billions) 14.3 14.4 14.2 Leasing 0.3 0.4 0.4 Home Equity 1.2 1.2 1.2 Construction 39 (3.8%) Consumer 1.2 1.0 1.0 Leases 8 (1.8%) C&I 2.1 2.2 2.1 Consumer 3 (0.3%) 4.3 4.2 4.2 (0.0%) (0) Home Equity Reside
Slide 6: Retail & Commercial Deposits Up $21 MM; Deposit Costs Stabilizing
RETAIL & COMML DEPOSITS UP $21 MM DEPOSIT COSTS STABILIZING Total Deposits Deposit Composition ($ billions) ($ billions) 21.5 1.0 20.3 20.2 Time 3.7 3.3 3.4 9.3 9.9 Money Market 3.9 4.1 4.1 Savings 6.0 Retail Commercial Public 6.1 5.9 Q3 Highlights • $91 mm, or 0.4%, decrease in total deposits o $21
Slide 7: $3.9 MM Increase in Net Interest Income, 3 BP Increase in NIM
$3.9 MM INCREASE IN NET INT INCOME 3 BP INCREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q2 ‘24 – Q3 ‘24 NIM Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 4.40% 175.0 4.30% 170.0 4.20% 165.0 157.1 156.7 4.10% 160.0 152.9 4.00% 155.0 3.90%
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) ($ millions) 126.1 125.0 122.1 51.8 53.3 119.4 46.1 115.0 105.0 58.3% 59.2% 59.8% 95.0 85.0 75.0 Q3 23 Q2 24 Q3 24 Q3 23 Q2 24 Q3 24 Nonint Expense Efficiency Ratio • No unusual items in Q3 • Q3 2024 noninterest expen
Slide 9: Asset Quality Remains Strong
ASSET QUALITY REMAINS STRONG ($ millions) ($ millions) ▪ QTD NCO Rate - Annualized QTD NCO/Avg Loans and Leases ▪ Includes OREO and 90+ days past due accruing loans ($ millions) ($ millions) ▪ TLL - Total Loans and Leases ▪ 30-89 days past due is comprised of accruing and non-accruing loans 8
Slide 10: Allowance for Credit Loss
ALLOWANCE FOR CREDIT LOSS RESERVE LEVELS CONTINUE TO PROVIDE FOR UNCERTAINTY • The Asset ACL / Total Loans and Leases increased to 1.15% from 1.12% over last quarter. Rollforward of the On-Balance Sheet Allowance for Credit Losses Home ($ in 000’s) C&I CRE Const Lease Mortgage Equity Consumer Total
Slide 11: Commercial Real Estate
COMMERCIAL REAL ESTATE (As of 9/30/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 732 17.2% 59.3% 1.7% Hotel 381 8.9% 53.9% 0.0% Retail 823 19.3% 61.4% 1.1% Multi-family 837 19.6% 55.1% 12.1% Industrial 653 15.3% 58.1% 2.8% Dealer Related 455 10.7% 68.3% 0.0
Slide 12: Questions
QUESTIONS rN First Hawaiian, Inc.
Slide 13: Appendix
> AP Pp EN D IX fA First Hawaiian, Inc. 2
Slide 14: Summary Income Statement
SUMMARY INCOME STATEMENT Quarter ended ($ in millions except per share data) 9/30/24 6/30/24 9/30/23 Net interest income $ 156.7 $ 152.9 $ 157.1 Provision for credit losses 7.4 1.8 7.5 Noninterest income 53.3 51.8 46.1 Noninterest expense 126.1 122.1 119.4 Pre-tax income 76.4 80.7 76.4 Tax expense 1
Slide 15: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 9/30/24 6/30/24 9/30/23 Selected Assets Investment securities – AFS $ 2,056.0 $ 2,068.0 $ 2,722.7 Investment securities – HTM 3,853.7 3,917.2 4,104.1 Loans and leases 14,241.4 14,360.0 14,332.3 Total assets 23,780.3 23,991.8 24
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (As of 9/30/24) Balances Industry % of Balances % Criticized ($ mm) Auto Dealers 768 36.4% 1.9% Retail - 0.0% 0.0% Hospitality/Hotel 84 4.0% 0.1% Food Service 44 2.1% 2.4% Transportation 67 3.2% 1.4% Other 1,147 54.3% 4.8% Total 2,110 100.0% 3.4% Industries deemed to exhibit
Slide 17: Construction
CONSTRUCTION (As of 9/30/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 67 6.3% 45.1% 0.0% Hotel 67 6.3% 50.6% 0.0% Retail 24 2.3% 62.4% 0.0% Multi-family 540 51.1% 56.8% 0.0% Industrial 133 12.6% 51.8% 0.0% Dealer Related 66 6.3% 80.2% 0.0% Other 159 15.1%
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of ne
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP TO NON-GAAP RECONCILIATION For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (dollars in thousands) 2024 2024 2023 2024 2023 Income Statement Data: Net income $ 61,492 $ 61,921 $ 58,221 $ 177,633 $ 187,481 Average total stockholders' equity