Core Viewpoint - First Hawaiian, Inc. plans to release its first quarter 2025 financial results on April 23, 2025, before the market opens, followed by a conference call to discuss the results [1] Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be announced on April 23, 2025 [1] - A conference call to discuss the results is scheduled for the same day at 1:00 p.m. Eastern Time [1] Group 2: Conference Call Access - Participants can access the conference call by registering through a provided link to receive a dial-in number and personalized PIN code [2] - It is recommended that participants join the call fifteen minutes early 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, and more [4]

Employee and Diversity - As of December 31, 2024, the company had over 2,000 employees with an average tenure of 11.8 years[20] - The board of directors includes 40% women and 70% ethnically diverse individuals, with 62% of employees being women and 87% of the workforce being ethnically diverse[25] - The company recognizes the importance of employee engagement and development to meet evolving corporate and customer needs[21] - The company offers 12 leadership development programs and over 20,000 professional development courses through its Online Learning Center[23] Regulatory Environment - The company is subject to extensive regulation under federal and state banking laws, impacting its growth potential and financial performance[32] - The company must obtain prior approval from the Federal Reserve for acquisitions that would result in owning 5% or more of any class of voting shares of a bank[46] - The company controls more than 30% of the total deposits in the Hawaii market, limiting its ability to acquire additional banks in Hawaii[47] - The company is a Federal Deposit Insurance Corporation (FDIC) insured bank chartered under Hawaii law and is not a member of the Federal Reserve System[37] - FHI is required to maintain a capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of 7% CET1 to risk-weighted assets[59] - FHI is subject to regulatory oversight by the Federal Reserve regarding its dividend policies and share repurchases[51] - The FDIA mandates that a bank must not pay dividends if it would cause the institution to become undercapitalized[64] - The Bank must maintain a minimum paid-in common stock and additional paid-in capital of $6.5 million to pay dividends under Hawaii law[50] - The FDIA prohibits an IDI from accepting brokered deposits unless it is well capitalized or adequately capitalized with a waiver from the FDIC[69] Financial Performance - Total noninterest income for the year ended December 31, 2024, was $185.8 million, a decrease of $15.0 million or 7% compared to 2023[295] - Service charges on deposit accounts increased to $31.1 million for the year ended December 31, 2024, up $1.4 million or 5% from 2023[296] - Credit and debit card fees reached $64.4 million for the year ended December 31, 2024, an increase of $0.5 million or 1% compared to 2023[297] - Other service charges and fees were $45.9 million for the year ended December 31, 2024, an increase of $8.6 million or 23% from 2023[298] - Trust and investment services income was $38.3 million for the year ended December 31, 2024, a slight decrease compared to 2023[299] - Total noninterest expense for the year ended December 31, 2024, was $501.2 million, an increase of $0.1 million compared to 2023, while it increased by $60.7 million or 14% compared to 2022[306] - Net income for the Retail Banking segment was $238.4 million for the year ended December 31, 2024, an increase of $55.4 million or 30% compared to 2023, primarily due to a $48.7 million increase in net interest income[319] - Total net income for the company was $230.1 million for the year ended December 31, 2024, a decrease from $234.9 million in 2023[317] Capital Ratios - FHI's CET1 capital ratio and Tier 1 capital ratio were each 12.80% as of December 31, 2024, exceeding the minimum requirements[67] - The total capital ratio for FHI was 13.99% as of December 31, 2024, which is above the required minimum of 10%[67] - Under the Capital Rules, the minimum capital ratios include 4.5% CET1, 6.0% Tier 1 capital, and 8.0% total capital to risk-weighted assets[61] Loans and Leases - Total loans and leases were $14.4 billion as of December 31, 2024, an increase of $54.8 million or less than 1% from December 31, 2023[361] - Commercial and industrial loans increased by $82.1 million or 4% to $2.2 billion as of December 31, 2024[363] - Commercial real estate loans increased by $123.7 million or 3% to $4.5 billion as of December 31, 2024[364] - The total residential loan portfolio was $5.3 billion, with residential mortgages making up a significant portion at $4.2 billion[375] - The company evaluates loans for impairment and non-accrual status, with loans on non-accrual status generally classified as impaired[378] Non-Performing Assets - Total Non-Performing Assets (NPAs) increased to $20.7 million as of December 31, 2024, up by $2.1 million or 11% from $18.6 million in 2023[383] - The ratio of NPAs to total loans and leases and Other Real Estate Owned (OREO) was 0.14% as of December 31, 2024, an increase of one basis point from 0.13% in 2023[383] - Residential mortgage non-accrual loans rose to $12.8 million, a significant increase of $5.1 million or 68% from $7.6 million in 2023[384] Deposits - Total deposits decreased by $1.0 billion or 5% to $20.3 billion as of December 31, 2024, primarily due to a $747.6 million decrease in public time deposit balances[399] - The amount of deposits exceeding FDIC insurance limits was estimated to be $9.9 billion or 49% of total deposits as of December 31, 2024, compared to $10.8 billion or 51% in 2023[401] Investment Securities - The carrying value of the investment securities portfolio was $5.7 billion as of December 31, 2024, a decrease of $579.6 million or 9% compared to December 31, 2023[352] - The total available-for-sale securities decreased from $2,255.3 million in 2023 to $1,926.5 million in 2024[349] - The total held-to-maturity securities decreased from $4,041.4 million in 2023 to $3,790.7 million in 2024[349] Other Financial Metrics - The company charged off $22.0 million in loans and leases in 2024, compared to $23.5 million in 2023, with net charge-offs of $13.6 million[390] - The allowance for credit losses (ACL) was considered adequate as of December 31, 2024, based on ongoing analysis of expected credit losses and economic outlook[393] - Goodwill remained unchanged at $995.5 million as of December 31, 2024, with no impairment identified for the year[395]

Core Viewpoint - First Hawaiian (FHB) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock performance [1][7]. Earnings Estimate Revisions - Current-quarter earnings are projected at $0.46 per share, reflecting a year-over-year increase of +9.52%. Over the past 30 days, three estimates have been revised upward, with no negative revisions, leading to a 13.11% increase in the Zacks Consensus Estimate [4]. - For the full year, the earnings estimate stands at $1.89 per share, representing a +5.59% change from the previous year. In the last month, four estimates have been raised, resulting in a 10.94% increase in the consensus estimate [5]. Analyst Sentiment - There is a strong consensus among analysts regarding the upward revision of earnings estimates for First Hawaiian, which has contributed to a favorable Zacks Rank of 1 (Strong Buy). This ranking is based on a proven track record of outperforming the market [3][6]. Stock Performance - The stock has experienced a 9.8% gain over the past four weeks, driven by positive earnings growth prospects, suggesting that it may be a timely addition to investment portfolios [7].

Core Insights - First Hawaiian (FHB) reported a revenue of $161.96 million for the quarter ended December 2024, which is a decrease of 22.9% compared to the same period last year [1] - The earnings per share (EPS) for the quarter was $0.41, an increase from $0.37 in the year-ago quarter, indicating a positive EPS surprise of +2.50% against the consensus estimate of $0.40 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $186.28 million, resulting in a revenue surprise of -13.06% [1] Financial Metrics - Net charge-offs were reported at 0.1%, aligning with the average estimate based on three analysts [4] - Total Non-Accrual Loans and Leases amounted to $20.68 million, exceeding the three-analyst average estimate of $18.82 million [4] - The net interest margin was recorded at 3%, slightly above the average estimate of 2.9% from three analysts [4] - The efficiency ratio stood at 65.5%, higher than the average estimate of 63.4% from three analysts [4] - Average balance of total earning assets was $21.08 billion, marginally above the estimated $21.02 billion [4] - Total Non-Performing Assets were reported at $20.68 million, slightly above the average estimate of $20.49 million [4] - Total Noninterest Income was $29.38 million, below the average estimate of $33.03 million from three analysts [4] - Net Interest Income reached $158.75 million, surpassing the average estimate of $151.38 million from three analysts [4] - Bank-owned life insurance income was $5.71 million, significantly higher than the average estimate of $2.96 million based on two analysts [4] - Net Interest Income (FTE) was reported at $160.10 million, exceeding the average estimate of $154.11 million from two analysts [4] - Other service charges and fees totaled $13.13 million, above the average estimate of $10.81 million from two analysts [4] - Noninterest income from other sources was $4.45 million, compared to the average estimate of $2.55 million based on two analysts [4] Stock Performance - Shares of First Hawaiian have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite's +2.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Core Viewpoint - First Hawaiian (FHB) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.37 per share a year ago, indicating a positive earnings surprise of 2.50% [1] Financial Performance - The company posted revenues of $161.96 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 13.06% and decreased from $210.14 million year-over-year [2] - Over the last four quarters, First Hawaiian has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - First Hawaiian shares have gained approximately 3.2% since the beginning of the year, matching the S&P 500's gain of 3.2% [3] - The company's earnings outlook is favorable, with the current consensus EPS estimate for the coming quarter at $0.41 on revenues of $202.5 million, and $1.74 on revenues of $830.69 million for the current fiscal year [7] Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 10% of over 250 Zacks industries, suggesting a strong performance potential for stocks within this sector [8]

4 th Quarter 2024 Earnings Call January 31, 2025 0 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. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", ...

Financial Performance - Net income for the year ended December 31, 2024, was $230,129 thousand, down from $234,983 thousand in 2023, a decrease of 2.0%[23] - Net income for Q4 2024 was $52,496,000, down from $61,492,000 in Q3 2024, representing a decrease of 16.3%[25] - Basic earnings per share for Q4 2024 was $0.41, compared to $0.48 in Q4 2023, reflecting a decline of 14.6%[23] - Return on average total assets for Q4 2024 was 0.88%, down from 1.02% in Q3 2024, indicating a decline in asset efficiency[42] Assets and Liabilities - Total assets reached $23.8 billion as of December 31, 2024, unchanged from September 30, 2024[5] - Total assets as of December 31, 2024, were $23,828,186 thousand, slightly down from $24,926,474 thousand as of December 31, 2023, a decrease of 4.4%[24] - Total liabilities as of December 31, 2024, were $21,210,700,000, a slight increase from $21,132,251,000 as of September 30, 2024[26] - Stockholders' equity decreased to $2,617,486,000 as of December 31, 2024, from $2,648,034,000 as of September 30, 2024[26] Loans and Deposits - Gross loans and leases increased by $166.9 million, or 1.2%, to $14.4 billion compared to the prior quarter[5] - Total deposits rose by $94.5 million, or 0.5%, to $20.3 billion from the previous quarter[5] - Total loans and leases amounted to $14,408,258 thousand as of December 31, 2024, showing an increase from $14,241,370 thousand as of September 30, 2024[35] - Total deposits reached $20,322,216 thousand as of December 31, 2024, compared to $20,227,702 thousand as of September 30, 2024[36] Income and Expenses - Net interest income for Q4 2024 was $158.8 million, up $2.0 million, or 1.3%, from $156.7 million in Q3 2024[6] - Noninterest income decreased by $23.9 million to $29.4 million in Q4 2024, primarily due to a $26.2 million loss on the sale of investment securities[10] - Noninterest expense was $124.1 million in Q4 2024, a decrease of $2.0 million from the prior quarter[11] - Total interest income for Q4 2024 was $240,162,000, a decrease of 3.3% from $249,996,000 in Q3 2024[25] Credit Quality - A negative provision for credit losses of $0.8 million was recorded in Q4 2024, compared to a $7.4 million provision in Q3 2024[7] - The allowance for credit losses was $160,393,000 as of December 31, 2024, down from $163,700,000 as of September 30, 2024[26] - Non-performing assets totaled $20,679 thousand as of December 31, 2024, an increase from $17,834 thousand as of September 30, 2024[37] - The ratio of net loans and leases charged-off to average loans and leases outstanding was 0.09% for the three months ended December 31, 2024, down from 0.11% in the previous quarter[38] Capital and Dividends - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on February 28, 2025[2] - The Common Equity Tier 1 Capital Ratio was 12.80% as of December 31, 2024, down from 12.39% as of December 31, 2023[24] - The average tangible stockholders' equity for Q4 2024 was $1,634,108 thousand, up from $1,593,314 thousand in Q3 2024, reflecting an increase of approximately 2.6%[42] Operational Efficiency - The efficiency ratio for Q4 2024 was 65.51%, an increase from 59.48% in Q4 2023, indicating a decline in operational efficiency[23] - Average total assets decreased to $23,795,735 thousand in Q4 2024 from $24,046,696 thousand in Q3 2024, a reduction of approximately 1.0%[42]

Core Insights - First Hawaiian, Inc. reported strong financial results for Q4 2024, with growth in loan and deposit balances, an expanded net interest margin, controlled expenses, and excellent credit quality [2][12]. Financial Performance - Total assets reached $23.8 billion as of December 31, 2024, unchanged from the previous quarter [5]. - Gross loans and leases increased by $166.9 million, or 1.2%, to $14.4 billion [5]. - Total deposits rose by $94.5 million, or 0.5%, to $20.3 billion [5]. - Net interest income for Q4 2024 was $158.8 million, up $2.0 million, or 1.3%, from the prior quarter [6]. - The net interest margin improved to 3.03%, an increase of 8 basis points from 2.95% in the previous quarter [6]. Credit Quality - The company recorded a negative provision for credit losses of $0.8 million in Q4 2024, compared to a provision of $7.4 million in the prior quarter [7][12]. - The allowance for credit losses was $160.4 million, or 1.11% of total loans and leases, down from 1.15% in the previous quarter [11]. Noninterest Income and Expenses - Noninterest income decreased to $29.4 million in Q4 2024, down $23.9 million from $53.3 million in the prior quarter, primarily due to a $26.2 million loss on the sale of investment securities [8][12]. - Noninterest expense was $124.1 million, a decrease of $2.0 million from $126.1 million in the prior quarter [9]. Capital Management - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on February 28, 2025 [2]. - A stock repurchase program was adopted for up to $100 million of outstanding common stock during 2025 [3][16]. - The company repurchased 1.5 million shares at a total cost of $40 million in Q4 2024, with an average cost of $27.14 per share [15]. Efficiency and Ratios - The efficiency ratio for Q4 2024 was 65.5%, compared to 59.8% in the prior quarter [9]. - The effective tax rate was 18.9%, down from 19.6% in the previous quarter [10]. - Return on average total assets was 0.88%, while return on average tangible stockholders' equity was 12.78% [24].

Company Overview - First Hawaiian (FHB) is expected to report a year-over-year increase in earnings of +8.1%, with earnings projected at $0.40 per share, despite a revenue decline of 11.4% to $186.28 million for the quarter ended December 2024 [3][12]. Earnings Expectations - The earnings report is scheduled for January 31, 2025, and could influence stock movement based on whether the results exceed or fall short of expectations [2][12]. - The consensus EPS estimate has been revised 1.64% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for First Hawaiian is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -27.50%, suggesting a bearish outlook from analysts [10][11]. - Despite the negative Earnings ESP, First Hawaiian holds a Zacks Rank of 1 (Strong Buy), complicating predictions regarding an earnings beat [11]. Historical Performance - In the last reported quarter, First Hawaiian exceeded the consensus EPS estimate by +9.09%, with actual earnings of $0.48 per share compared to an expected $0.44 [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Context - In the Zacks Banks - West industry, Preferred Bank (PFBC) is expected to report earnings of $2.42 per share, reflecting a year-over-year decline of -6.9%, with revenues projected at $70 million, down 2.1% [17]. - The consensus EPS estimate for Preferred Bank has been revised 3.4% higher, but a lower Most Accurate Estimate results in an Earnings ESP of -0.62%, indicating uncertainty about beating the consensus [18].

HONOLULU, Jan. 10, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ: FHB) announced today that it plans to release its fourth quarter 2024 financial results on Friday, January 31, 2025 before the market opens. First Hawaiian will host a conference call to discuss the company’s results on the same day at 1:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BI80003c73e95b445aa5 ...