First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Investor Presentation (May 2022)
23 slides from First Hawaiian's investor presentation, May 16, 2022
Slide 1: Investor Presentation May / June 2022
0 Investor Presentation May / June 2022
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward - Looking Statements This presentation contains, and from time - to - time in connection with this presentation our management may make, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward - looking statements refl
Slide 3: Q1 2022 Financial Highlights
Q1 2022 FINANCIAL HIGHLIGHTS 1 (1) Comparisons to Q4 2021 (2) ROATA and ROATCE are non - GAAP financial measures. A reconciliation of average tangible assets and average tangible stockholders ’ equity to the comparable GAAP measurements is provided in the appendix of this slide presentation. (3) Dec
Slide 4: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 3 $ in thousands 3/31/22 12/31/21 Assets Int - bearing Deposits in Other Banks $ 1,352.1 $ 1,011.8 Investment Securities 8,062.4 8,428.0 Loans and Leases 12,891.7 12,962.0 Total Assets 25,042.7 24,992.4 Liabilities Deposits $ 22,270.4 $ 21,816.1 Long - Term Borrowings --- --
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 4 Strong, Consistent Financial Performance Leading Position In Attractive Markets Experienced Leadership Team High Quality Balance Sheet Proven Through The Cycle Performance Well - Capitalized With Attractive Dividend 1 2 3 4 5 6
Slide 6: Strong Performer in Attractive Market
NALs / Loans 59.0% 57.5% FHB Peer Median 15.1% 14.0% FHB Peer Median STRONG PERFORMER IN ATTRACTIVE MARKET 5 Branch Presence Financial Overview – 1Q 2022 YTD ($ billions) Source: Public filings and S&P Global Market Intelligence as of 11 - May - 2022 Note: Financial data as of 31 - Mar - 2022. Marke
Slide 7: Fundamental Strengths of Hawaii's Economy Remain Intact
DESPITE NEAR - TERM CHALLENGES, THE FUNDAMENTAL STRENGTHS OF HAWAII’S ECONOMY REMAIN INTACT 6 • Attractive destination for domestic and international travelers • Attractive alternative for travelers concerned about international travel • Well - developed visitor industry infrastructure • High qualit
Slide 8: Strong Performance Through the Cycle
$9.1 $22.3 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 1Q22 Source: Public filings and S&P Global Market Intelligence as of 11 - May - 2022 Note: Financial data as of 31 - Mar - 2022. $10 – $50bn banks constituted as of 31 - Dec - 2021; excludes merger targets. (1) ROATCE (Return on
Slide 9: Consistent Track Record of Strong Profitability
$ 359 $ 365 $ 357 $ 355 $ 353 $ 380 $ 387 $ 380 $ 395 $ 365 $ 310 $ 71 $ – $ 50 $ 100 $ 150 $ 200 $ 250 $ 300 $ 350 $ 400 $ 450 1.40% 1.47% 0.89% 0.97% 0.92% 1.37% 1.03% 1.15% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% CONSISTENT TRACK RECORD OF STRONG PROFITABILITY 8 Source: Public filings and S&P G
Slide 10: Proven, Consistent, and Conservative Credit Risk Management
0.21% 0.73% 0.08% 0.10% 1.05% 0.02% 0.00% 0.50% 1.00% 1.50% PROVEN, CONSISTENT, AND CONSERVATIVE CREDIT RISK MANAGEMENT Strong through the cycle credit performance driven by conservative approach to credit risk management 9 Year Ended December 31 0.16% 0.63% 0.10% 0.39% 3.05% 0.44% 0.00% 0.50% 1.00%
Slide 11: Well-Capitalized with an Attractive Dividend
4.2% 3.1% First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets WELL - CAPITALIZED WITH AN ATTRACTIVE DIVIDEND $75MM STOCK REPURCHASE PROGRAM IN 2022 10 Source: Public filings and S&P Global Market Intelligence as of 11 - May - 2022 Note: Financial data as of 31 - Mar - 2022. $10 – $50bn b
Slide 12: Appendix
11 Appendix
Slide 13: Full Suite of Products and Services
FULL SUITE OF PRODUCTS AND SERVICES 12 • 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 dev
Slide 14: A Leader in Hawaii
A LEADER IN HAWAII 13 The banking market in Hawaii is dominated by local banks, with the top 4 banks accounting for ~93% of deposits Sources: S&P Global Market Intelligence, FDIC, SEC and company filings. Company filings used for peers where available, othe rwi se regulatory data used. Note: Financi
Slide 15: Balance Sheet Well Positioned to Benefit from Rising Rates
BALANCE SHEET WELL POSITIONED TO BENEFIT FROM RISING RATES 14 Loan yields began responding to increase in fed funds rate in March Well Positioned for Rising Rates 2.5 % 4.9 % 5.0 % 9.8 % Ramp Immediate Change NII Sensitivity +100bps NII Sensitivity +50bps • Approximately $5.2 bn, or 40% of the loan
Slide 16: Solid, Low-Cost Core Deposit Base
$8.9 $9.1 $9.4 $10.2 $10.5 $12.2 $12.9 $13.6 $14.7 $16.1 $16.8 $17.6 $17.2 $16.4 $19.2 $21.8 $22.3 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 1Q22 Demand 44% Money Market 18% Savings 26% Time 7% SOLID, LOW - COST CORE DEPOSIT BASE Strong brand, deep ties to the community and a l
Slide 17: Steady Organic Growth and Balanced Loan Portfolio
$6.4 $6.5 $7.9 $8.0 $8.3 $8.3 $9.0 $9.5 $10.0 $10.7 $11.5 $12.3 $13.1 $13.2 $13.3 $13.0 $12.9 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 1Q22 STEADY ORGANIC GROWTH AND BALANCED LOAN PORTFOLIO Steady through the cycle organic loan growth and balanced loan portfolio Expect mid - t
Slide 18: Demonstrated History of Disciplined Expense Management
46.5% 45.3% 45.4% 46.1% 48.1% 47.0% 47.3% 49.0% 48.4% 50.1% 56.5% 59.0% 60.3% 60.3% 62.2% 61.9% 61.1% 59.2% 58.3% 55.8% 55.7% 55.6% 57.1% 57.5% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q22 First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Ass
Slide 19: Asset Quality: Continued Strong Credit Performance
ASSET QUALITY CONTINUED STRONG CREDIT PERFORMANCE 18 • 30 - 89 past due comprised of accruing and non - accruing loans Note: TLL - Total Loans and Leases • 90 past due comprised of accruing loans • Includes OREO
Slide 20: Hawaii Banks Have a Significant Deposit Advantage
HAWAII BANKS HAVE A SIGNIFICANT DEPOSIT ADVANTAGE 19 Source: SNL Financial and the Federal Reserve website (1) Deposit beta is defined as the change in deposit costs as a percentage of the change in Fed Funds over a particular period. D ep osit cost uses starting point (2Q04) to peak (3Q07); one qua
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP TO NON - GAAP RECONCILIATIONS Return on average tangible stockholders’ equity, return on average tangible assets and tangible stockholders’ equity to tangible assets are non - GAAP financial measures. We compute our return on average tangible stockholders’ equity as the ratio of net income to a
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP TO NON - GAAP RECONCILIATION 21 ( 1) Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021 (dollars in thousands, except per share amounts) Income Statement Data: Net income $ 57,719 $ 57,022 $ 57,693 Average total stockholders' equity $ 2,547,865 $ 2,675,51
Slide 23: GAAP to Non-GAAP Reconciliation - Annual
GAAP TO NON - GAAP RECONCILIATION - ANNUAL 22 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) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $265.7 $185.8 $ 284.4 $ 264.4 $ 183.7 $230.2 $213.