First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Q2 2024 Earnings Presentation
19 slides from First Hawaiian's earnings presentation, Jul 26, 2024
Slide 1: 2nd Quarter 2024 Earnings Call
2nd Quarter 2024 Earnings Call July 26, 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: Q2 2024 Financial Highlights
Q2 2024 FINANCIAL HIGHLIGHTS1 • Net income $61.9 mm Q2 2024 Q1 2024 • Total loans and leases increased $39.7 mm Net Income ($mm) $61.9 $54.2 Diluted EPS $0.48 $0.42 • Total deposits decreased $350.6 mm Net Interest Margin 2.92% 2.91% • Cost of deposits: 1.70% Efficiency Ratio 59.2% 62.2% • Total cos
Slide 4: Q2 2024 Balance Sheet Highlights
Q2 2024 BALANCE SHEET HIGHLIGHTS $ in millions 6/30/24 3/31/24 Assets Q2 Highlights Cash and Cash $ 1,114.8 $ 1,274.3 Equivalents1 • Continued to use low-yielding investment Investment Securities - AFS 2,068.0 2,159.3 portfolio run off to fund loan growth / reduce high cost deposits Investment Secur
Slide 5: Good Loan Production Partially Offset by Payoffs and Paydowns
GOOD LOAN PRODUCTION PARTIALLY OFFSET BY PAYOFFS AND PAYDOWNS Total Loans and Leases Q2 ‘24 vs Q1 ‘24 Net Changes ($ millions) ($ billions) 14.4 14.3 14.4 Leasing 0.3 0.4 0.4 Home Equity 1.1 1.2 1.2 Construction 45 (4.6%) Consumer 1.2 1.1 1.0 Leases 31 (7.9%) C&I 2.2 2.2 2.2 C&I 19 (0.9%) 4.3 4.2 4.
Slide 6: Deposits Down $351 MM, Reduced Public Time Deposits $148 MM
DEPOSITS DOWN $351 MM REDUCED PUBLIC TIME DEPOSITS $148 MM Total Deposits Deposit Composition ($ billions) ($ billions) 1.1 21.1 20.7 20.3 Time 3.3 3.3 3.3 9.2 10.0 Money Market 3.8 4.1 4.1 Savings 5.8 Retail Commercial Public 6.3 6.1 Q2 Highlights • $351 mm, or 1.7%, decrease in total deposits o $1
Slide 7: $1.6 MM Decrease in Net Interest Income, 1 bp Increase in NIM
$1.6 MM DECREASE IN NET INT INCOME 1 BP INCREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q1 ‘24 – Q2 ‘24 NI Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 4.40% 2 2 2 2 175.0 170.0 159.9 4.30% 2 1 1 165.0 154.4 4.20% 160.0 4.10% 4 152.9 4.0
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) 128.8 ($ millions) 125.0 122.1 120.9 51.4 51.8 47.3 115.0 105.0 62.2% 58.0% 59.2% 95.0 85.0 75.0 Q2 23 Q1 24 Q2 24 Q2 23 Q1 24 Q2 24 Nonint Expense Efficiency Ratio • Both Q1 2024 and Q2 2024 included • Q1 2024 nonint
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 ▪ Q1 202
Slide 10: Allowance for Credit Loss
ALLOWANCE FOR CREDIT LOSS RESERVE LEVELS CONTINUE TO PROVIDE FOR UNCERTAINTY • The Asset ACL / Total Loans and Leases remain unchanged at 1.12%. Rollforward of the On-Balance Sheet Allowance for Credit Losses Home ($ in 000’s) C&I CRE Const Lease Mortgage Equity Consumer Total 3/31/2024 17,087 43,52
Slide 11: Commercial Real Estate
COMMERCIAL REAL ESTATE (As of 6/30/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 743 17.3% 59.5% 1.7% Hotel 385 8.9% 53.8% 0.0% Retail 814 18.9% 62.0% 1.2% Multi-family 844 19.6% 55.3% 6.0% Industrial 663 15.4% 58.0% 2.7% Dealer Related 471 10.9% 67.9% 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) 6/30/24 3/31/24 6/30/23 Net interest income $ 152.9 $ 154.4 $ 159.9 Provision for credit losses 1.8 6.3 5.0 Noninterest income 51.8 51.4 47.3 Noninterest expense 122.1 128.8 120.9 Pre-tax income 80.7 70.7 81.4 Tax expense 1
Slide 15: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 6/30/24 3/31/24 6/30/23 Selected Assets Investment securities – AFS $ 2,068.0 $ 2,159.3 $ 2,909.4 Investment securities – HTM 3,917.2 3,988.0 4,180.4 Loans and leases 14,359.9 14,320.2 14,362.8 Total assets 23,991.8 24,279.2 24
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (As of 6/30/24) Balances Industry % of Balances % Criticized ($ mm) Auto Dealers 836 37.8% 1.7% Retail - 0.0% 0.0% Hospitality/Hotel 88 4.0% 0.2% Food Service 42 1.9% 2.8% Transportation 46 2.1% 2.1% Other 1,197 54.3% 4.0% Total 2,209 100.00% 2.9% Industries deemed to exhibit
Slide 17: Construction
CONSTRUCTION (As of 6/30/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 85 8.3% 46.8% 0.0% Hotel 64 6.3% 50.3% 0.0% Retail 25 2.5% 60.7% 0.0% Multi-family 489 48.0% 57.5% 0.0% Industrial 118 11.6% 51.0% 0.6% Dealer Related 80 7.9% 80.5% 0.0% Other 157 15.4%
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 Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands) 2024 2024 2023 2024 2023 Income Statement Data: Net income $ 61,921 $ 54,220 $ 62,442 $ 116,141 $ 129,260 Average total stockholders' equity $ 2,512,471 $ 2