First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Investor Presentation (May 2018)
27 slides from First Hawaiian's investor presentation, May 22, 2018
Slide 1: Disclaimer
Disclaimer 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 perf
Slide 2: BNP Paribas Sold ~12% Ownership In First Hawaiian on May 10, 2018
2 Source: Public filings, NASDAQ (1) Underwriters have the option to purchase up to an additional 1.5mm shares – which would further reduce BNPP’s ownership to 48.8%. BNP Paribas Sold ~12% Ownership In First Hawaiian on May 10, 2018 NASDAQ Corporate Governance Requirements and Other Implications Ove
Slide 3: Strong Capital Distribution Record
Strong Capital Distribution Record Dividends Since its IPO, First Hawaiian has returned $184mm to investors in the form of dividends or the equivalent of a ~5.7% cash-dividend return(1) Over that time, the quarterly dividend has increased twice (+20%) to $0.24 per quarter and we expect to be able to
Slide 4: Strong performance in 1Q 2018
Strong performance in 1Q 2018 4 Core measurements are non-GAAP financial measurements. Core excludes certain gains, expenses and one-time items. See non-GAAP reconciliations of core net income, core net interest income, core noninterest income, core noninterest expense, and average tangible assets a
Slide 5: 2018 outlook
2018 outlook 5 DRIVER 2018 OUTLOOK COMMENTS HAWAII ECONOMY Continued Growth Continued growth expected in 2018 and 2019. Increasing visitor arrivals and spending expected to continue (six consecutive years of improvement through 2017)(1) LOANS Residential High Single Digit Growth New mortgage lending
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 6 Best-in-class Financial Performance Leading Position in Attractive Market High Quality Balance Sheet with Steady Growth Realized and Forecasted Consistently Increased Capital Return Proven Through the Cycle Performance Significant Catalysts for Enhanced Performance 1 2 3
Slide 7: Best-in-Class Franchise
NALs / Loans 170/30/39 251/177/36 126/34/38 0/170/167 119/176/227 227/227/227 R:79 G:129 B:189 Best-in-Class Franchise 7 Branch Presence Financial Overview – 1Q 2018 YTD ($ billions) Source: Public filings and SNL Financial as of 11-May-2018 Note: Financial data as of 31-Mar-18. Market data as of 11
Slide 8: Hawaii is an Attractive Market with Strong Economic Backdrop
Hawaii is an Attractive Market with Strong Economic Backdrop 8 Real GDP ($ billion) Population (000s) Source: Hawaii Department of Business, Economic Development & Tourism, Bureau of Labor Statistics, Bureau of Economic Analysis, Federal Housing Finance Agency, and SNL Financial Note: Real GDP adjus
Slide 9: The Clear Leader in Hawaii
The Clear Leader in Hawaii 9 The banking market in Hawaii is dominated by local banks with the top 6 banks accounting for ~97% of deposits; First Hawaiian is the clear leader among its Hawaii banking peers based on size and operating performance Sources: SNL Financial, FDIC and company filings Note:
Slide 10: Steady Realized & Forecasted Balance Sheet Growth
STEADY REALIZED & FORECASTED BALANCE SHEET GROWTH High Quality Composition (1Q18) 2018 Outlook Recent Growth Profile ($bn) Loans Deposits High single digit growth in residential, CRE and Construction Mid-single digit growth in consumer Low single digit growth in C&I Maintain credit quality 10 Source
Slide 11: Strong Performance Through the Cycle
Source: Public filings and SNL Financial as of 11-May-2018 Note: Financial data as of 31-Mar-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB ratios shown as core. Core excludes certain gains, expenses and one-time items. See annual and quarterly non-GAAP reconciliations
Slide 12: Consistent Track Record of Strong Profitability
Consistent Track Record of Strong Profitability 12 Source: Public filings and SNL Financial , as of 11-May-2018 Note: Financial data as of 31-Mar-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB measures shown as core. Core excludes certain gains, expenses and one-time i
Slide 13: Ongoing Capital Distribution with Future Opportunities
Ongoing Capital Distribution with future opportunities(1) 13 Source: Public filings and SNL Financial as of 11-May-2018 Note: Financial data as of 31-Mar-18. $10–$50bn banks constituted as of 31-Dec-17, excludes merger targets. (1) Dividends and share repurchases are subject to approval of FHI’s boa
Slide 14: Balance sheet positioned for NIM improvement in rising rate environment
Balance sheet positioned for NIM improvement in rising rate environment 14 Improving NIM Positioned for Rising Rates ~ 30% of loan portfolio indexed to 1 or 3 month Libor 98% of balance sheet funded with deposits Hawaii has experienced lower deposit costs and had a lower deposit beta in the last rat
Slide 15: Balance sheet positioned for NIM improvement in rising rate environment
BALANCE SHEET POSITIONED FOR NIM IMPROVEMENT IN RISING RATE ENVIRONMENT Improving NIM A First Hawaiian, nc. Positioned for Rising Rates 350% ae ag 240% 322% 320% a8 306% 302% 3.00% {292% T13% Zo0 % 200% 202% 2064, 2.90% 288% 287% a) $135 ar $133 250% $131 g 499 $131 $123 $120 117 2.00% 150% 1.00% 0.
Slide 16: Full Suite of Products and Services
Full Suite of Products and Services 16 Largest commercial lender in Hawaii 52 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 developers $13.4 b
Slide 17: Growing, Low-Cost Core Deposit Base
Growing, Low-Cost Core Deposit Base Strong brand, deep ties to the community and a leading market share position have driven an attractive, low-cost deposit base 17 CAGR: 5.9% Deposits: $17.4bn 1Q18 YTD Deposit Cost: 0.35% Year Ended December 31, Deposit Portfolio Composition (1Q18) Consistent Depos
Slide 18: Steady Organic Growth and Balanced Loan Portfolio
Steady Organic Growth and Balanced Loan Portfolio Steady through the cycle organic loan growth and balanced loan portfolio with attractive forward growth opportunities 18 Well positioned to serve clients during the financial crisis CAGR: 6.2% Loans: $12.5bn 1Q18 YTD Loan Yield: 4.07% Loans / Deposit
Slide 19: Proven, Consistent, and Conservative Credit Risk Management
Proven, Consistent, and Conservative Credit Risk Management Strong through the cycle credit performance driven by conservative approach to credit risk management 19 Year Ended December 31 Year Ended December 31 Year Ended December 31 Year Ended December 31 Source: Public filings and SNL Financial, a
Slide 20: Operating Leverage
Operating Leverage Through prudent expense management 20 Source: Public filings and SNL Financial, as of 11-May-2018 Note: Financial data as of 31-Mar-18. $10–$50bn banks constituted as of 31-Dec-17; excludes merger targets. FHB measures shown as core. Core excludes certain gains, expenses and one-t
Slide 21: Hawaii Banks have a Significant Deposit Advantage
Hawaii Banks have a Significant Deposit Advantage 21 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. Deposit cost uses starting point (2Q04) to peak (3Q07); one quart
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 22 We present net interest income, noninterest income, noninterest expense, net income, earnings per share and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measures exclude from the corresponding
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-gaap reconciliation (1) One-time items include salaries and benefits stemming from the 2017 Tax Cuts and Jobs Act and public offering related costs. (2) Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period, exclusive of one-
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-gaap reconciliation 24 (1) Annualized for the three months ended March 31, 2018 and 2017 and December 31, 2017 (dollars in thousands, except per share amounts) Income Statement Data: Net income $ 67,958 $ 11,684 $ 56,740 Average total stockholders' equity $ 2,500,299 $ 2,570,704 $ 2,488,
Slide 25: GAAP to Non-GAAP Reconciliation - Annual
GAAP to Non-GAAP Reconciliation - annual 25 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) 2017 2016 2015 2014 2013 2012 2011 Net Income $ 183.7 $230.2 $213.8 $216.7 $214.5 $211.1 $199.7 Basic EPS $1.32 $1.65
Slide 26: GAAP to Non-GAAP Reconciliation - Annual
GAAP to Non-GAAP Reconciliation - annual 26 Note: Totals may not sum due to rounding. Noninterest income and expenses prior to 2017 have been revised from the amounts previously reported to reflect the reclassifications described in the footnote to Table 1 of the fourth quarter 2017 earnings release
Slide 27: GAAP to Non-GAAP Reconciliation - Annual
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