First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Q4 2024 Earnings Presentation
19 slides from First Hawaiian's earnings presentation, Jan 31, 2025
Slide 1: 4th Quarter 2024 Earnings Call
4th Quarter 2024 Earnings Call January 31, 2025 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: Q4 2024 Financial Highlights
Q4 2024 FINANCIAL HIGHLIGHTS1 • Net income $52.5 mm • Includes $26.2 mm pre-tax ($19.2 mm after-tax) loss on Q4 2024 Q3 2024 sale of investment securities Net Income ($mm) $52.5 $61.5 • Total loans and leases increased $166.9 mm Diluted EPS $0.41 $0.48 • Total deposits increased $94.5 mm Net Interes
Slide 4: Q4 2024 Balance Sheet Highlights
Q4 2024 BALANCE SHEET HIGHLIGHTS $ in millions 12/31/24 9/30/24 Q4 Highlights Assets Cash and Cash • Balance sheet remains strong $ 1,170.2 $ 1,072.8 o Maintained strong capital levels Equivalents1 Investment Securities - o Continue to maintain high liquidity levels 1,926.5 2,056.0 o Loan/deposit ra
Slide 5: Loans Grew $167 MM, or 1.2%
LOANS GREW $167 MM, OR 1.2% Total Loans and Leases 12/31/24 vs 9/30/24 Net Changes ($ millions) ($ billions) 14.4 14.2 14.4 Leasing 0.4 0.4 0.4 Home Equity 1.2 1.2 1.2 CRE 199 (4.7%) Consumer 1.1 1.0 1.0 2.2 C&I 137 (6.5%) C&I 2.2 2.1 Leases 2 (0.4%) 4.3 4.2 4.2 Consumer Residential (0.6%) (6) (0.7%
Slide 6: Retail & Commercial Deposits Grew $324 MM; Cost of Deposits Down 17 bps
RETAIL & COMML DEPOSITS GREW $324 MM TOTAL COST OF DEPOSITS DOWN 17 BPS Total Deposits Deposit Composition ($ billions) ($ billions) 0.8 21.3 20.2 20.3 Time 3.5 3.4 3.3 9.5 10.0 Money Market 3.8 4.1 4.0 Savings 6.4 Retail Commercial Public 5.9 6.0 Q4 Highlights • $95 mm, or 0.5%, increase in total d
Slide 7: $2.0 MM Increase in Net Interest Income, 8 bp Increase in NIM
$2.0 MM INCREASE IN NET INT INCOME 8 BP INCREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q3 ‘24 – Q4 ‘24 NIM Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 4.40% 0.04% 3.03% 175.0 4.30% 170.0 4.20% 0.15% 165.0 151.8 156.7 158.8 4.10% 160.0
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) ($ millions) 142.3 Non-recurring Non-recurring 58.3 126.1 53.3 23.6 124.1 7.4 Loss on Sale of Securities 26.2 67.3% 65.5% 59.8% 29.4 Q4 23 Q3 24 Q4 24 Q4 23 Q3 24 Q4 24 Nonint Expense Efficiency Ratio • Q4 2023 includ
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 decreased to 1.11% from 1.15% 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 9/30/
Slide 11: Commercial Real Estate
COMMERCIAL REAL ESTATE (As of 12/31/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 737 16.5% 59.0% 2.3% Hotel 474 10.6% 51.2% 0.0% Retail 898 20.1% 61.0% 1.1% Multi-family 863 19.3% 55.8% 11.5% Industrial 642 14.4% 57.9% 3.7% Dealer Related 456 10.2% 67.2% 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) 12/31/24 9/30/24 12/31/23 Net interest income $ 158.8 $ 156.7 $ 151.8 (Benefit) provision for credit losses (0.8) 7.4 5.3 Noninterest income 29.4 53.3 58.3 Noninterest expense 124.1 126.1 142.3 Pre-tax income 64.7 76.4 62.5
Slide 15: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 12/31/24 9/30/24 12/31/23 Selected Assets Investment securities – AFS $ 1,926.5 $ 2,056.0 $ 2,255.3 Investment securities – HTM 3,790.7 3,853.7 4,041.4 Loans and leases 14,408.3 14,241.4 14,353.5 Total assets 23,828.2 23,780.3
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (As of 12/31/24) Balances Industry % of Balances % Criticized ($ mm) Auto Dealers 802 35.7% 1.7% Retail - 0.0% 0.0% Hospitality/Hotel 87 3.9% 0.1% Food Service 42 1.9% 2.4% Transportation 67 3.0% 0.6% Other 1,249 55.5% 5.5% Total 2,247 100.0% 3.7% Industries deemed to exhibit
Slide 17: Construction
CONSTRUCTION (As of 12/31/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 39 4.2% 53.5% 0.0% Hotel 69 7.5% 50.7% 0.0% Retail 25 2.7% 62.3% 0.0% Multi-family 455 49.6% 56.2% 0.0% Industrial 154 16.8% 52.5% 0.0% Dealer Related 68 7.4% 79.3% 0.0% Other 108 11.8%
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 Year Ended December 31, September 30, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023 Income Statement Data: Net income $ 52,496 $ 61,492 $ 47,502 $ 230,129 $ 234,983 Average total stockholders' equity $ 2,6