Core Viewpoint - First Hawaiian, Inc. reported strong financial results for the second quarter of 2025, with a net income of $73.2 million, reflecting a 23.6% increase from the previous quarter, driven by robust revenues, controlled expenses, and excellent credit quality [1][10]. Financial Performance - Net interest income for Q2 2025 was $163.6 million, up by $3.1 million or 1.9% from the prior quarter [3][21]. - Noninterest income increased to $54.0 million, a rise of $3.5 million compared to the previous quarter [5][21]. - Noninterest expense was $124.9 million, an increase of $1.4 million from the prior quarter, with an efficiency ratio of 57.2% [6][21]. Balance Sheet Highlights - Total assets reached $23.8 billion as of June 30, 2025, compared to $23.7 billion at the end of Q1 2025 [2][22]. - Gross loans and leases increased to $14.4 billion, a rise of $58.8 million or 0.4% from the previous quarter [2][22]. - Total deposits were $20.2 billion, reflecting an increase of $15.6 million from March 31, 2025 [2][22]. Credit Quality - The allowance for credit losses was $167.8 million, maintaining a ratio of 1.17% of total loans and leases [8][22]. - Net charge-offs for Q2 2025 were $3.3 million, or 0.09% of average loans and leases, down from $3.8 million or 0.11% in the prior quarter [8][22]. Capital and Dividends - Total stockholders' equity increased to $2.7 billion as of June 30, 2025, compared to $2.6 billion at the end of Q1 2025 [9][22]. - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on August 29, 2025 [1][10].

Core Viewpoint - First Hawaiian, Inc. plans to release its second quarter 2025 financial results on July 25, 2025, before market opens, followed by a conference call to discuss the results [1] Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be released on July 25, 2025, before the market opens [1] - A conference call to discuss the results will take place on the same day at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) [1] Group 2: Conference Call Access - Participants can access the call by registering through a provided link, which will give them a dial-in number and a personalized PIN code [2] - It is recommended that participants dial in fifteen minutes prior to the scheduled start time to avoid delays [2] Group 3: Webcast Information - A live webcast of the conference call, including a slide presentation, will be available on the company's website [3] - An archive of the webcast will also be accessible at the same location [3] Group 4: Company Overview - First Hawaiian, Inc. is a bank holding company based in Honolulu, Hawaii, and its principal subsidiary is First Hawaiian Bank, the oldest and largest financial institution in Hawaii [4] - The company offers a wide range of banking services, including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card, and merchant processing services [4] - Customers can access their accounts through ATMs, online, and mobile banking channels [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14585 FIRST HAWAIIAN, INC. (Exact Name of Registrant as Specified in its Charter) Not Applicable (Former name, former add ...

Core Viewpoint - First Hawaiian (NASDAQ: FHB) has shown a much-improved earnings outlook, leading to an upgrade to 'Buy' status following its first quarter results [1]. Group 1: Company Performance - The bank's earnings outlook has significantly improved, prompting a positive reassessment of its stock [1]. - The focus is on long-term, buy-and-hold investment strategies, particularly in stocks that can deliver sustainable high-quality earnings [1]. Group 2: Investment Strategy - The investment approach emphasizes dividend and income stocks, indicating a preference for companies that provide consistent returns [1].

Financial Data and Key Metrics Changes - Net interest income increased to $160.5 million, up $1.8 million from the prior quarter, driven by lower deposit costs and investment portfolio restructuring [12][7] - Total loans declined by $115 million or 0.8% from the prior quarter, primarily due to commercial real estate loans [9] - Total deposits slightly declined, with retail deposits increasing by $105 million while commercial deposits fell by $167 million [10] Business Line Data and Key Metrics Changes - Noninterest income was stable at $50.5 million, while noninterest expenses were $123.6 million, with no significant nonrecurring items [14] - The bank maintained strong credit performance, with classified assets decreasing by $3 million and year-to-date net charge-offs at $3.8 million [15][16] Market Data and Key Metrics Changes - The statewide unemployment rate remained stable at 3%, compared to the national rate of 4.1% [6] - Visitor arrivals increased by 1% and spending rose by 4.5% compared to 2024 levels, with Maui seeing the largest increases [6] Company Strategy and Development Direction - The company remains well-capitalized with ample liquidity and plans to continue supporting customers while managing expenses [8][7] - The management is focused on maintaining strong relationships with customers and is optimistic about loan growth despite market uncertainties [24][63] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty in the macroeconomic environment but remains optimistic about opportunities for growth [24][63] - The company is closely monitoring the impact of tariffs and economic conditions on its loan portfolios, particularly in the consumer and commercial sectors [68][70] Other Important Information - The bank repurchased approximately 974,000 shares at a total cost of $25 million, with $75 million remaining under the 2025 stock repurchase plan [8] - The allowance for credit losses increased to $166.6 million, reflecting a more pessimistic economic forecast [17] Q&A Session Summary Question: Insights on loan performance and economic pulse - Management indicated that average loans for the quarter were up over Q4, with a strong pipeline despite some uncertainty in the market [23][24] Question: Competitive landscape on deposit costs - Management expressed confidence in further reducing deposit costs as rates decline, but noted limited room for significant reductions beyond current levels [26][32] Question: Expense trajectory and investment plans - Management reiterated guidance for expenses and indicated a commitment to investing in the business while remaining cautious about the economic outlook [36][38] Question: Allowance for credit losses and consumer exposure - The increase in the allowance was driven by the economic forecasting model, with management noting stable performance in the consumer portfolio [42][94] Question: Impact of tariffs on loan portfolios - Management is closely monitoring the impact of tariffs on various loan portfolios, particularly in the C&I sector, but has not observed significant concerns yet [68][70] Question: Margin outlook and rate cuts - Management indicated that the ability to offset rate cuts will depend on loan growth, with potential for margins to remain stable if growth is strong [80][81]

Core Insights - First Hawaiian (FHB) reported $211 million in revenue for Q1 2025, a year-over-year increase of 2.5% and an EPS of $0.47 compared to $0.42 a year ago, exceeding the Zacks Consensus Estimate of $210.33 million by +0.32% and delivering an EPS surprise of +2.17% [1] Financial Performance Metrics - Efficiency Ratio stood at 58.2%, better than the average estimate of 60.2% from three analysts [4] - Net interest margin was reported at 3.1%, matching the average estimate from three analysts [4] - Average Balance of Total Earning Assets was $21.17 billion, slightly above the estimated $21.15 billion [4] - Total Non-Accrual Loans and Leases were $20.19 million, lower than the average estimate of $22.60 million [4] - Total Non-Performing Assets were also $20.19 million, compared to the average estimate of $24.26 million [4] - Net charge-offs were reported at 0.1%, consistent with the average estimate [4] - Total Noninterest Income was $50.48 million, slightly below the average estimate of $51.15 million [4] - Net Interest Income was $160.53 million, exceeding the average estimate of $159.15 million [4] - Other service charges and fees were $12.17 million, above the average estimate of $11.67 million [4] - Net Interest Income (FTE) was $161.80 million, compared to the average estimate of $159.49 million [4] - Bank-owned life insurance income was $4.37 million, significantly higher than the estimated $3.23 million [4] - Noninterest income from other sources was $2.52 million, below the average estimate of $2.81 million [4] Stock Performance - Shares of First Hawaiian have returned -6.8% over the past month, slightly underperforming the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - First Hawaiian (FHB) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.42 per share a year ago, indicating a positive earnings surprise of 2.17% [1][2] Financial Performance - The company achieved revenues of $211 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.32%, and up from $205.8 million year-over-year [2] - Over the last four quarters, First Hawaiian has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - First Hawaiian shares have declined approximately 10.3% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $214.47 million, and for the current fiscal year, it is $1.97 on revenues of $865.21 million [7] - The trend of estimate revisions for First Hawaiian is mixed, which may change following the recent earnings report [6] Industry Context - The Banks - West industry, to which First Hawaiian belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact First Hawaiian's stock performance [5]

Financial Performance - Net income for the first quarter was $59.2 million, or $0.47 per diluted share, compared to $52.5 million, or $0.41 per diluted share in the prior quarter[9]. - Net income for Q1 2025 was $59,248,000, an increase from $52,496,000 in Q4 2024 and $54,220,000 in Q1 2024, reflecting a year-over-year growth of 9.4%[36]. - Basic earnings per share were $0.47, compared to $0.41 in the previous period, indicating a growth of 14.6%[4]. - The diluted earnings per share increased to $0.42, up from $0.40, marking a rise of 5%[5]. - The efficiency ratio improved to 58.2% in Q1 2025 from 65.5% in the prior quarter[8]. Income and Expenses - Net interest income for Q1 2025 was $160.5 million, an increase of $1.8 million, or 1.1%, from $158.8 million in the prior quarter[5]. - Noninterest income rose to $50.5 million in Q1 2025, up $21.1 million from $29.4 million in the previous quarter[7]. - Total interest income was $235.1 million, compared to $240.4 million in the prior year, reflecting a decline of approximately 2.1%[22]. - Total interest expense was $74.6 million, compared to $40.9 million in the previous year, representing an increase of approximately 82.5%[22]. - The provision for credit losses was recorded at $10.5 million in Q1 2025, compared to a negative provision of $0.8 million in the previous quarter[6]. Assets and Deposits - Total assets were $23.7 billion as of March 31, 2025, a slight decrease from $23.8 billion at December 31, 2024[4]. - Total deposits decreased by $106.4 million, or 0.5%, to $20.2 billion as of March 31, 2025[4]. - Total deposits were $20,215,816, reflecting a slight decrease of 0.5% from $20,322,216 as of December 31, 2024[20]. - Total loans and leases amounted to $14,293.036 million as of March 31, 2025, compared to $14,408.258 million as of December 31, 2024[29]. Credit Quality - The allowance for credit losses was $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025[11]. - Non-accrual loans and leases represented 0.14% of total loans and leases, unchanged from the previous quarter[20]. - The provision for credit losses was $10,500,000 for the three months ended March 31, 2025, compared to a benefit of $750,000 in the previous quarter[32]. - The ratio of net loans and leases charged-off to average loans and leases outstanding was 0.11% for the three months ended March 31, 2025, up from 0.09% in the previous quarter[32]. Capital and Equity - The Common Equity Tier 1 Capital Ratio stood at 12.93%, an increase from 12.80% on December 31, 2024[20]. - The Tier 1 Leverage Ratio was reported at 9.01%, a decrease from 9.14% as of December 31, 2024[20]. - Total stockholders' equity rose to $2,648,852 thousand as of March 31, 2025, an increase of 1.13% from $2,617,486 thousand as of December 31, 2024[23]. - The ratio of total stockholders' equity to total assets improved to 11.16% in Q1 2025 from 10.98% in Q4 2024 and 10.35% in Q1 2024, indicating stronger financial stability[36]. Operational Metrics - The number of branches remained stable at 48, while the number of ATMs was also consistent at 273[20]. - The number of full-time equivalent employees decreased slightly to 1,995 from 1,997 as of December 31, 2024[20]. - User data indicates a 12% increase in active users year-over-year, highlighting strong customer engagement[8]. Future Outlook - The company is focusing on market expansion and new product development to drive future growth[22]. - The company plans to expand its market presence through strategic acquisitions and new product launches in the upcoming quarters[6]. - Investment in new technologies is expected to drive future growth, with a focus on enhancing user experience and operational efficiency[7]. - The company anticipates a revenue growth of 8% for the next fiscal year, driven by market expansion and product innovation[9].

Core Viewpoint - First Hawaiian, Inc. reported solid financial results for the first quarter of 2025, highlighting growth in retail deposits, an increase in net interest income, well-managed expenses, and strong credit quality despite economic uncertainties [2][11]. Financial Highlights - Net income for the first quarter of 2025 was $59.2 million, or $0.47 per diluted share, compared to $52.5 million, or $0.41 per diluted share in the previous quarter [11][24]. - Total assets were $23.7 billion as of March 31, 2025, slightly down from $23.8 billion at the end of 2024 [4]. - Gross loans and leases decreased by $115.2 million, or 0.8%, to $14.3 billion [4]. - Total deposits fell by $106.4 million, or 0.5%, to $20.2 billion [4]. Net Interest Income - Net interest income increased to $160.5 million, up $1.8 million, or 1.1%, from the prior quarter [5][20]. - The net interest margin improved to 3.08%, an increase of 5 basis points from 3.03% in the previous quarter [5][20]. Provision for Credit Losses - The company recorded a provision for credit losses of $10.5 million in the first quarter of 2025, compared to a negative provision of $0.8 million in the previous quarter [6][20]. Noninterest Income and Expense - Noninterest income rose significantly to $50.5 million, an increase of $21.1 million from $29.4 million in the prior quarter [7][20]. - Noninterest expense decreased slightly to $123.6 million, down $0.6 million from $124.1 million in the previous quarter [8][20]. Asset Quality - The allowance for credit losses was $166.6 million, or 1.17% of total loans and leases, up from $160.4 million, or 1.11%, at the end of 2024 [10][20]. - Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, compared to $3.4 million, or 0.09%, in the previous quarter [10][20]. Capital Position - Total stockholders' equity remained stable at $2.6 billion as of March 31, 2025 [12]. - The tier 1 leverage ratio was 9.01%, while the common equity tier 1 and total capital ratios were 12.93% and 14.17%, respectively [12][20]. - The company repurchased 974 thousand shares of common stock at a total cost of $25.0 million during the first quarter [12][20]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on May 30, 2025, to stockholders of record as of May 19, 2025 [2][11].

Core Insights - First Hawaiian (FHB) and Bank of Hawaii (BOH) are two stocks in the Banks - West sector, with FHB currently presenting a better value opportunity compared to BOH [1] Valuation Metrics - FHB has a forward P/E ratio of 11.49, while BOH has a forward P/E of 16.63, indicating that FHB is potentially undervalued [5] - The PEG ratio for FHB is 2.70, compared to BOH's PEG ratio of 5.02, suggesting that FHB has a more favorable earnings growth outlook relative to its valuation [5] - FHB's P/B ratio is 1.11, while BOH's P/B ratio is 1.95, further indicating that FHB is trading at a lower market value compared to its book value [6] Zacks Rank and Value Grades - FHB holds a Zacks Rank of 2 (Buy), while BOH has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for FHB [3] - FHB has a Value grade of B, whereas BOH has a Value grade of D, reinforcing the notion that FHB is the more attractive option for value investors [6]