First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Q4 2023 Earnings Presentation
19 slides from First Hawaiian's earnings presentation, Jan 26, 2024
Slide 1: 4th Quarter 2023 Earnings Call
4th Quarter 2023 Earnings Call January 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: Q4 2023 Financial Highlights
Q4 2023 FINANCIAL HIGHLIGHTS1 • Net income $47.5 mm Q4 2023 Q3 2023 • Includes $16.3 mm FDIC Special Assessment expense, or $12.0 mm net of taxes. Net Income ($mm) $47.5 $58.2 • Total loans and leases unchanged Diluted EPS $0.37 $0.46 Net Interest Margin 2.81% 2.86% • Total deposits decreased $178.8
Slide 4: Q4 2023 Balance Sheet Highlights
Q4 2023 BALANCE SHEET HIGHLIGHTS $ in millions 12/31/23 9/30/23 Comments Assets • Balance sheet actions taken to improve 2024 earnings Cash and Cash $ 1,739.9 $ 1,213.4 o Sold $526 mm of AFS securities with average Equivalents1 yield of approximately 2.4% Investment Securities 2,255.3 2,722.7 - AFS
Slide 5: Loans and Leases Flat in Q4
LOANS AND LEASES FLAT IN Q4 Total Loans and Leases Q4 ‘23 vs Q3 ‘23 Net Changes ($ millions) ($ billions) C&I 64 (+3.0%) 14.1 14.3 14.4 0.3 0.3 0.4 Leases 47 (+14.2%) Leasing 1.2 1.2 1.1 Home Equity Construction 1.2 1.1 15 (1.7%) Consumer 1.2 Home Equity 7 (0.6%) 2.2 2.1 2.2 C&I (-0.5%) (21) Residen
Slide 6: Retail & Commercial Deposits Up $405 MM, Public Time Deposits Down $506 MM
RETAIL & COMML DEPOSITS UP $405 MM PUBLIC TIME DEPOSITS DOWN $506 MM Total Deposits Deposit Composition ($ billions) ($ billions) 21.7 21.5 21.3 1.8 Time 2.5 3.7 3.5 Money 9.6 9.9 Market 4.0 3.9 3.8 Savings 6.4 6.0 6.4 Retail Commercial Public Q4 Highlights • $179 mm, or 0.8%, decrease in total depo
Slide 7: $5.4 MM Decrease in Net Interest Income, 5 bp Decrease in NIM
$5.4 MM DECREASE IN NET INT INCOME, 5 BP DECREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q3 ‘23 – Q4 ‘23 NIM Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 171.8 4.40% 175.0 4.30% 170.0 4.20% 165.0 157.1 4.10% 160.0 151.8 4.00% 155.0 3.90%
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) 58.3 ($ millions) 7.4 Non-recurring Non-recurring 142.3 48.2 46.1 23.6 50.9 119.4 113.9 118.7 67.3% 58.3% 51.5% Q4 22 Q3 23 Q4 23 Q4 22 Q3 23 Q4 23 Nonint Expense Efficiency Ratio • Non-recurring items include: • Non-
Slide 9: Asset Quality
ASSET QUALITY ($ millions) ($ millions) ▪ YTD NCO Rate - Annualized YTD 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 1 bp to 1.09% • The bank recorded a $2.2MM release on the reserve for unfunded commitments Rollforward of the On-Balance Sheet Allowance for Credit Losses Home ($ in 000’s)
Slide 11: Commercial Real Estate
COMMERCIAL REAL ESTATE (In Millions) Weighted Property Type Balances % of Balances % Criticized Average LTV Office 751 17.3% 59.7% 0.5% Hotel 398 9.2% 53.7% 1.7% Retail 797 18.4% 62.3% 1.3% Multi-family 870 20.0% 55.9% 5.8% Industrial 660 15.2% 58.5% 2.8% Dealer Related 466 10.7% 69.5% 0.0% Other 39
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) 12/31/23 9/30/23 12/31/22 Net interest income $ 151.8 $ 157.1 $ 171.8 Provision for credit losses 5.3 7.5 3.0 Noninterest income 58.3 46.1 48.2 Noninterest expense 142.3 119.4 113.9 Pre-tax income 62.5 76.4 103.1 Tax expens
Slide 15: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 12/31/23 9/30/23 12/31/22 Selected Assets Investment securities – AFS $ 2,255.3 $ 2,722.7 $ 3,151.1 Investment securities – HTM 4,041.4 4,104.1 4,320.6 Loans and leases 14,353.5 14,332.3 14,092.0 Total assets 24,926.5 24,912.5
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (In Millions) Property Type Balances % of Balances % Criticized Auto Dealers 705 32.6% 0.0% Retail - 0.0% 0.0% Hospitality/Hotel 84 3.9% 0.3% Food Service 46 2.1% 4.6% Transportation 50 2.3% 2.4% Other 1,280 59.1% 6.2% Total 2,165 100.00% 3.8% Industries deemed to exhibit hig
Slide 17: Construction
CONSTRUCTION (In Millions) Weighted Property Type Balances % of Balances % Criticized Average LTV Office 76 8.5% 47.1% 0.0% Hotel 55 6.1% 49.8% 0.0% Retail 27 3.0% 58.1% 0.0% Multi-family 423 47.0% 57.1% 0.0% Industrial 95 10.5% 50.7% 0.7% Dealer Related 73 8.1% 82.9% 0.0% Other 151 16.9% 58.9% 0.1%
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 Year Ended December 31, September 30, December 31, December 31, (dollars in thousands) 2023 2023 2022 2023 2022 Income Statement Data: Net income $ 47,502 $ 58,221 $ 79,588 $ 234,983 $ 265,685 Average total stockholders' equity $ 2,3