First Hawaiian, Inc. · NASDAQ:FHB
First Hawaiian — Investor Presentation (November 2023)
27 slides from First Hawaiian's investor presentation, Nov 13, 2023
Slide 1: Investor Presentation November / December, 2023
0 Investor Presentation November / December, 2023
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: Q3 2023 Financial Highlights
Q3 2023 FINANCIAL HIGHLIGHTS 1 (1) Comparisons to Q2 2023 (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 millions 9/30/23 6/30/23 Assets Cash and Cash Equivalents 1 $ 1,213.4 $ 558.1 Investment Securities - AFS 2,722.7 2,909.4 Investment Securities - HTM 4,104.1 4,180.4 Loans and Leases 14,332.3 14,362.8 Total Assets 24,912.5 24,511.6 Liabilities Deposits $21,511.5 $21,0
Slide 5: Maui Update
MAUI UPDATE 1 MAUI REAL ESTATE - SECURED LOANS $ million (9/30/23) Lahaina Kula All Other Areas Maui Total CRE 23.7 7.2 357.7 388.5 Construction 0.3 0.0 47.5 47.8 Residential 1 st position (includes HELOCS behind FHB 1 st ) 57.2 21.0 990.4 1,068.6 Subordinate position 3.6 2.8 99.8 106.2 Total 84.7 3
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS 5 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 7: Strong Performer in Attractive Market
NALs / Loans 56.9% 57.0% FHB Peer Median 18.7% 14.2% FHB Peer Median STRONG PERFORMER IN ATTRACTIVE MARKET 6 Branch Presence Financial Overview – 3Q 2023 ($ billions) Source: Public filings and S&P Global Capital IQ as of 03 - Nov - 2023 Note: Financial data as of 30 - Sep - 2023. Market data as of
Slide 8: Hawaii Is an Attractive Market with Strong Economic Fundamentals
HAWAII IS AN ATTRACTIVE MARKET WITH STRONG ECONOMIC FUNDAMENTALS 7 • Attractive destination for domestic and international travelers • Attractive alternative for travelers concerned about international travel • Well - developed visitor industry infrastructure • High quality medical care • Strategica
Slide 9: Strong Performance Through the Cycle
$9.1 $21.5 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 22 3Q23 Source: Public filings and S&P Global Capital IQ as of 03 - Nov - 2023 Note: Financial data as of 30 - Sep - 2023. $10 – $50bn banks constituted as of 31 - Dec - 2022; excludes merger targets. (1) ROATCE (Return on Averag
Slide 10: Consistent Track Record of Strong Profitability
$359 $365 $357 $355 $353 $380 $387 $380 $395 $365 $310 $353 $268 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3Q23 1.40% 1.47% 0.89% 1.06% 0.91% 1.39% 1.03% 1.07% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3Q23 CONSISTENT TRAC
Slide 11: Proven, Consistent, and Conservative Credit Risk Management
0.21% 0.73% 0.06% 0.10% 0.95% 0.12% 0.00% 0.50% 1.00% 1.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 3Q23 PROVEN, CONSISTENT, AND CONSERVATIVE CREDIT RISK MANAGEMENT Strong through the cycle credit performance driven by conservative approach to credit risk management 10 Ye
Slide 12: Well-Capitalized with an Attractive Dividend
WELL - CAPITALIZED WITH AN ATTRACTIVE DIVIDEND 11 Source: Public filings and S&P Global Capital IQ as of 03 - Nov - 2023 Note: Financial data as of 30 - Sep - 2023. $10 – $50bn banks constituted as of 31 - Dec - 2022, excludes merger targets. Percentages ma y not total due to rounding. (1) Dividends
Slide 13: First Hawaiian, Inc.
fA First Hawaiian, Inc:
Slide 14: Full Suite of Products and Services
FULL SUITE OF PRODUCTS AND SERVICES 13 • Largest commercial lender in Hawaii • 56 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 15: A Leader in Hawaii
A LEADER IN HAWAII 14 The banking market in Hawaii is dominated by local banks, with the top 4 banks accounting for ~93% of deposits (2) Sources: FDIC, SEC and company filings. Company filings and public information used for peers where available, otherwise reg ula tory data used. Note: Financial da
Slide 16: Well Positioned for Higher for Longer Rate Environment
WELL POSITIONED FOR HIGHER FOR LONGER RATE ENVIRONMENT 15 5 bp NIM decrease in Q3 Well - Matched Balance Sheet • Approximately $6.0 bn, or 42% of the loan portfolio, reprices within 90 days • Well - structured investment portfolio with limited extension risk • Stable, low - cost deposit base • Hawai
Slide 17: Solid, Low-Cost Core Deposit Base
$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 $21.7 $21.5 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 3Q23 Demand 35% Money Market 18% Savings 25% Time 11% SOLID, LOW - COST CORE DEPOSIT BASE Strong brand, deep ties to the community and a
Slide 18: Steady Organic Growth and Balanced Loan Portfolio
$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 $14.1 $14.3 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 3Q23 STEADY ORGANIC GROWTH AND BALANCED LOAN PORTFOLIO Steady through the cycle organic loan growth and balanced loan portfolio Expect low to
Slide 19: Demonstrated History of Disciplined Expense Management
$312 $302 $297 $304 $327 $337 $348 $365 $370 $368 $406 $440 $359 46.5% 45.3% 45.4% 46.1% 48.1% 47.0% 47.3% 49.0% 48.4% 50.1% 56.5% 55.2% 56.9% '11 '12 '13 '14 '15 '16 '17 '18 19 '20 '21 '22 3Q23 Noninterest Expense Efficiency Ratio 46.5% 45.3% 45.4% 46.1% 48.1% 47.0% 47.3% 49.0% 48.4% 50.1% 56.5% 55
Slide 20: Asset Quality
ASSET QUALITY 19 ▪ 30 - 89 days past due is comprised of accruing and non - accruing loans ▪ TLL - Total Loans and Leases ▪ YTD NCO Rate - Annualized YTD NCO/Avg Loans and Leases ▪ Includes OREO and 90+ days past due is comprised of accruing loans ($ millions) ($ millions) ($ millions) ($ millions)
Slide 21: Commercial Real Estate
COMMERCIAL REAL ESTATE 20 As of 9/30/23 (In $ Millions) The CRE portfolio continues to be well diversified across property types, well - secured with a weighted average LTV of 59.5% and criticized rate of 2.2%. • Office exposure in CRE represents approximately 5.5% of total loans and leases. • Despi
Slide 22: Commercial & Industrial
COMMERCIAL & INDUSTRIAL 21 As of 9/30/23 (In $ Millions) Industries deemed to exhibit higher volatility represent a modest amount of total C&I exposure and dealer related credits represent about 29% of total C&I inclusive of $465 million in flooring balances. Property Type Balances % of Balances % C
Slide 23: Construction
CONSTRUCTION 22 As of 9/30/23 (In $ Millions) The construction book is largely centered in rental and for - sale housing. Property Type Balances % of Balances Weighted Average LTV % Criticized Office 67 7.6% 46.8% 0.0% Hotel 50 5.7% 49.5% 0.0% Retail 23 2.6% 58.0% 0.0% Multi - family 433 48.9% 55.7%
Slide 24: Hawaii Banks Have a Significant Deposit Advantage
HAWAII BANKS HAVE A SIGNIFICANT DEPOSIT ADVANTAGE 23 Source: S&P Global 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 (1Q22) to current (2Q23). (2) Inc
Slide 25: 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, tangible stockholders’ equity to tangible assets and pre - tax, pre - provision earnings are non - GAAP financial measures. We compute our return on a
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP TO NON - GAAP RECONCILIATION 25 ( 1) Annualized for the three and nine months months ended September 30, 2023 and 2022, and three months ended June 30, 2023. (dollars in thousands) Income Statement Data: Net income $ 58,221 $ 62,442 $ 69,018 $ 187,481 $ 186,097 Average total stockholders' equit
Slide 27: GAAP to Non-GAAP Reconciliation - Annual
GAAP TO NON - GAAP RECONCILIATION - ANNUAL 26 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) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $265.7 $265.7 $185.8 $ 284.4 $ 264.4 $ 183.7
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