Slide 1: 1st Quarter 2024 Earnings Call
1st Quarter 2024 Earnings Call April 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: Q1 2024 Financial Highlights
Q1 2024 FINANCIAL HIGHLIGHTS1 • Net income $54.2 mm • Includes $4.1 mm FDIC special assessment Q1 2024 Q4 2023 expense, or $3.1 mm net of taxes Net Income ($mm) $54.2 $47.5 • Total loans and leases decreased $33.3 mm Diluted EPS $0.42 $0.37 • Total deposits decreased $663.2 mm Net Interest Margin 2.
Slide 4: Q1 2024 Balance Sheet Highlights
Q1 2024 BALANCE SHEET HIGHLIGHTS $ in millions 3/31/24 12/31/23 Assets Q1 Highlights Cash and Cash $ 1,274.3 $ 1,739.9 Equivalents1 • Continued to optimize balance sheet following Investment Securities 2,159.3 2,255.3 Q4 securities sale - AFS o Reduced cash and equivalents by $465.6 mm Investment Se
Slide 5: Loans and Leases Down Slightly
LOANS AND LEASES DOWN SLIGHTLY Total Loans and Leases Q1 ‘24 vs Q4 ‘23 Net Changes ($ millions) ($ billions) 14.2 14.4 14.3 Leasing 0.3 0.4 0.4 Home Equity 1.1 1.2 1.2 Construction 72 (8.0%) Consumer 1.2 1.1 1.1 C&I 25 (1.1%) C&I 2.3 2.2 2.2 Leases 14 (3.7%) 4.3 4.3 4.2 (0.8%) (9) Home Equity Reside
Slide 6: Deposits Down $663 MM, Reduced Public Time Deposits $470 MM
DEPOSITS DOWN $663 MM REDUCED PUBLIC TIME DEPOSITS $470 MM Total Deposits Deposit Composition ($ billions) ($ billions) 21.3 21.3 1.3 20.7 Time 2.6 3.5 9.3 3.3 10.1 Money 3.8 Market 3.8 4.1 Savings 6.2 6.4 Retail Commercial Public 6.3 Q1 Highlights • $663 mm, or 3.1%, decrease in total deposits o $2
Slide 7: $2.6 MM Increase in Net Interest Income, 10 bp Increase in NIM
$2.6 MM INCREASE IN NET INT INCOME 10 BP INCREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q4 ‘23 – Q1 ‘24 NIM Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 4.40% 175.0 167.2 4.30% 170.0 4.20% 165.0 151.8 4.10% 160.0 154.4 4.00% 155.0 3.90%
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) Non-recurring ($ millions) 58.3 Non-recurring 142.3 7.4 51.4 49.0 128.8 2.0 23.6 4.1 50.9 49.4 118.6 124.7 118.7 67.3% 62.2% 54.5% Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 Nonint Expense Efficiency Ratio • Noninterest inco
Slide 9: Asset Quality Remains Strong
ASSET QUALITY REMAINS STRONG ($ millions) ($ millions) ▪ YTD NCO Rate - Annualized YTD NCO/Avg Loans and Leases ▪ Includes OREO and 90+ days past due accruing loans ($ millions) ($ millions) 24.4(1) ▪ TLL - Total Loans and Leases ▪ 30-89 days past due is comprised of accruing and non-accruing loans
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 3 basis points to 1.12%. • We recorded a $0.79 mm release on the reserve for unfunded commitment. Rollforward of the On-Balance Sheet Allowance for Credit Losses Home ($ in
Slide 11: Commercial Real Estate
COMMERCIAL REAL ESTATE (As of 3/31/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 756 17.6% 59.5% 1.7% Hotel 388 9.0% 53.6% 0.0% Retail 787 18.3% 62.5% 1.2% Multi-family 857 19.9% 56.0% 5.8% Industrial 657 15.3% 57.9% 2.7% Dealer Related 461 10.7% 68.0% 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) 3/31/24 12/31/23 3/31/23 Net interest income $ 154.4 $ 151.8 $ 167.2 Provision for credit losses 6.3 5.3 8.8 Noninterest income 51.4 58.3 49.0 Noninterest expense 128.8 142.3 118.6 Pre-tax income 70.7 62.5 88.9 Tax expense
Slide 15: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 3/31/24 12/31/23 3/31/23 Selected Assets Investment securities – AFS $ 2,159.3 $ 2,255.3 $ 3,054.3 Investment securities – HTM 3,988.0 4,041.4 4,261.4 Loans and leases 14,320.2 14,353.5 14,221.3 Total assets 24,279.2 24,926.5 2
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (As of 3/31/24) Balances Industry % of Balances % Criticized ($ mm) Auto Dealers 693 31.6% 0.0% Retail - 0.0% 0.0% Hospitality/Hotel 86 3.9% 0.3% Food Service 44 2.0% 2.8% Transportation 53 2.4% 1.9% Other 1,314 60.1% 6.1% Total 2,190 100.00% 3.8% Industries deemed to exhibit
Slide 17: Construction
CONSTRUCTION (As of 3/31/24) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 82 8.4% 47.2% 0.0% Hotel 58 6.0% 50.0% 0.0% Retail 29 3.0% 59.6% 0.0% Multi-family 456 46.9% 57.0% 5.4% Industrial 109 11.2% 51.2% 0.6% Dealer Related 79 8.1% 81.0% 0.0% Other 160 16.4%
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 March 31, December 31, March 31, (dollars in thousands) 2024 2023 2023 Income Statement Data: Net income $ 54,220 $ 47,502 $ 66,818 Average total stockholders' equity $ 2,496,840 $ 2,374,669 $ 2,299,422 Less: average goodwill 995,492 995,492