First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Q1 2025 Earnings Presentation
19 slides from First Hawaiian's earnings presentation, Apr 23, 2025
Slide 1: 1st Quarter 2025 Earnings Call
1st Quarter 2025 Earnings Call April 23, 2025 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 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS1 • Net income $59.2 mm Q1 2025 Q4 2024 • Total loans and leases declined $115.2 mm Net Income ($mm) $59.2 $52.5 Diluted EPS $0.47 $0.41 • Total deposits declined $106.4 mm Net Interest Margin 3.08% 3.03% • Cost of deposits: 1.43% Efficiency Ratio 58.2% 65.5% • Total cost
Slide 4: Q1 2025 Balance Sheet Highlights
Q1 2025 BALANCE SHEET HIGHLIGHTS $ in millions 3/31/25 12/31/24 Assets Q1 Highlights Cash and Cash $ 1,314.6 $ 1,170.2 Equivalents1 • Balance sheet remains strong, with high Investment Securities - capital levels 1,858.4 1,926.5 AFS Investment Securities - 3,724.9 3,790.7 • We continue to have ample
Slide 5: Loans Declined $115 MM, or 0.8%
LOANS DECLINED $115 MM, OR 0.8% Total Loans and Leases 3/31/25 vs 12/31/24 Net Changes ($ millions) ($ billions) 14.3 14.4 14.3 Leasing 0.4 0.4 0.4 Home Equity 1.2 1.2 1.1 Construction 36 (3.9%) Consumer 1.1 1.0 1.0 C&I 14 (0.6%) C&I 2.2 2.2 2.3 Leases 3 (0.6%) 4.2 4.2 4.1 (0.6%) (7) Home Equity Res
Slide 6: Retail & Commercial Deposits Declined $62 MM; Cost of Deposits Down 11 bps
RETAIL & COMML DEPOSITS DECLINED $62 MM TOTAL COST OF DEPOSITS DOWN 11 BPS Total Deposits Deposit Composition ($ billions) ($ billions) 0.7 20.7 20.3 20.2 Time 3.3 3.3 9.4 3.4 10.1 Money Market 4.1 4.0 3.9 Savings Retail Commercial Public 6.3 6.0 6.1 Q1 Highlights • $106 mm, or 0.5%, decline in tota
Slide 7: $1.8 MM Increase in Net Interest Income, 5 bp Increase in NIM
$1.8 MM INCREASE IN NET INT INCOME 5 BP INCREASE IN NIM 210.0 5.00% 205.0 Net Interest Income and Net Interest Margin 4.90% Q4 ‘24 – Q1 ‘25 NIM Walk 200.0 4.80% 195.0 4.70% 190.0 ($ millions) 4.60% 185.0 4.50% 180.0 4.40% 0.01% 3.08% 175.0 4.30% 0.11% 170.0 4.20% 165.0 154.4 158.8 160.5 4.10% 160.0
Slide 8: Noninterest Income and Expense
NONINTEREST INCOME AND EXPENSE Noninterest Income Noninterest Expense ($ millions) ($ millions) Loss on Sale of Non-recurring 128.8 Securities 124.1 123.6 51.4 50.5 4.1 26.2 62.2% 65.5% 58.2% 29.4 Q1 24 Q4 24 Q1 25 Q1 24 Q4 24 Q1 25 Nonint Expense Efficiency Ratio • Q4 2024 included $26.2 million lo
Slide 9: Asset Quality Remains Strong
ASSET QUALITY REMAINS STRONG ($ 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 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 to 1.17% from 1.11% Rollforward of the On-Balance Sheet Allowance for Credit Losses Home ($ in 000’s) C&I CRE Const Lease Mortgage Equity Consumer Total 12/31/2024 16,332 4
Slide 11: Questions
QUESTIONS rN First Hawaiian, Inc.
Slide 12: Appendix
> AP Pp EN D IX fA First Hawaiian, Inc. iil
Slide 13: Summary Income Statement
SUMMARY INCOME STATEMENT Quarter ended ($ in millions except per share data) 3/31/25 12/31/24 3/31/24 Net interest income $ 160.5 $ 158.8 $ 154.4 (Benefit) provision for credit losses 10.5 (0.8) 6.3 Noninterest income 50.5 29.4 51.4 Noninterest expense 123.6 124.1 128.8 Pre-tax income 76.9 64.7 70.7
Slide 14: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS As of ($ in millions except per share data) 3/31/25 12/31/24 3/31/24 Selected Assets Investment securities – AFS $ 1,858.4 $ 1,926.5 $ 2,159.3 Investment securities – HTM 3,724.9 3,790.7 3,988.0 Loans and leases 14,293.0 14,408.3 14,320.2 Total assets 23,745.0 23,828.2 2
Slide 15: Commercial Real Estate
COMMERCIAL REAL ESTATE (As of 03/31/25) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 734 16.8% 59.1% 2.3% Hotel 441 10.1% 52.1% 0.0% Retail 892 20.4% 61.4% 1.0% Multi-family 846 19.4% 55.6% 11.7% Industrial 622 14.3% 57.3% 5.2% Dealer Related 451 10.3% 66.4% 0
Slide 16: Commercial & Industrial
COMMERCIAL & INDUSTRIAL (As of 03/31/25) Balances Industry % of Balances % Criticized ($ mm) Auto Dealers 774 34.2% 1.6% Retail - 0.0% 0.0% Hospitality/Hotel 90 4.0% 0.0% Food Service 41 1.8% 2.3% Transportation 69 3.1% 0.1% Other 1,287 56.9% 5.5% Total 2,261 100.0% 3.7% Industries deemed to exhibit
Slide 17: Construction
CONSTRUCTION (As of 03/31/25) Balances Weighted Property Type % of Balances % Criticized ($ mm) Average LTV Office 41 4.3% 53.2% 0.0% Hotel 70 7.3% 50.8% 0.0% Retail 24 2.5% 59.5% 0.0% Multi-family 506 53.0% 55.4% 0.0% Industrial 156 16.4% 52.3% 0.0% Dealer Related 66 6.9% 79.3% 0.0% Other 91 9.5% 5
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) 2025 2024 2024 Income Statement Data: Net income $ 59,248 $ 52,496 $ 54,220 Average total stockholders' equity $ 2,641,978 $ 2,629,600 $ 2,496,840 Less: average goodwill 995,492 995,492