Financial Data and Key Metrics Changes - The overall Hawaii economy remains resilient, with a September unemployment rate of 2.9%, compared to the national rate of 4.1% [3] - Total loans decreased by $119 million compared to the prior quarter, with unexpected loan payoffs impacting growth [6] - Net interest income was $156.7 million, an increase of $3.9 million from the prior quarter, with a margin increase of 3 basis points [7][8] - Non-interest income rose to $53.3 million, about $1.5 million more than the prior quarter, driven by higher credit and debit card fees [8] Business Line Data and Key Metrics Changes - Total deposits decreased by $91 million, primarily due to a $112 million decline in public deposits, while commercial deposits increased by $112 million [6] - The bank's credit risk metrics remain strong, with no broad signs of weakness observed in consumer or commercial books [9] - Classified assets increased by $64.6 million, mainly due to downgrades, but the loans are well-collateralized [10] Market Data and Key Metrics Changes - Visitor arrivals in Hawaii were down 2.2% and spending down 2.3% compared to 2023 levels [3] - The median sales price for a single-family home on Oahu was $1.1 million, a 6% increase from last year, while condo prices decreased by 2.8% [3] Company Strategy and Development Direction - The company plans to focus on growth opportunities in commercial real estate and dealer floor plans, particularly in Hawaii and the West Coast [13] - The bank intends to resume share repurchases in the fourth quarter due to strong capital levels [5] Management's Comments on Operating Environment and Future Outlook - Management noted that the pipeline for loans remains strong, despite flat loan growth expected for the full year due to unexpected payoffs [6][13] - The company is proactively managing deposit rates in anticipation of Fed rate cuts, with expectations of a modest decline in net interest margin in the fourth quarter [7][15] Other Important Information - The bank's capital levels continue to grow due to strong earnings and favorable changes in accumulated other comprehensive income (AOCI) [5] - The company expects full-year expenses to be in the $500 million range, with a focus on maintaining discipline in expense management [8][26] Q&A Session Summary Question: Follow-up on growth outlook and competitive landscape - Management indicated that opportunities for growth are primarily in commercial real estate and dealer floor plans, with some new relationships being onboarded [13] Question: Provision for consumer and home equity books - Management clarified that the reserve build was not concerning and was based on modeling adjustments rather than specific portfolio weaknesses [22][24] Question: Impact of payoffs on loan growth - Management estimated that unexpected payoffs weighed approximately $90 million to $95 million on loan growth in the third quarter [39] Question: Expectations for non-interest-bearing deposits - Management expressed hope that the percentage of non-interest-bearing deposits would stabilize around 34% [40] Question: Dynamics of loan growth and payoff cadence - Management noted that cash flow forecasts for fixed-rate loans are independent of unexpected payoffs, but elevated payoffs could pose risks [42]

For the quarter ended September 2024, First Hawaiian (FHB) reported revenue of $210 million, up 3.3% over the same period last year. EPS came in at $0.48, compared to $0.46 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $204.83 million, representing a surprise of +2.52%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.44. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

First Hawaiian (FHB) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this bank holding company would post earnings of $0.42 per share when it actually produced earnings of $0.48, delivering a surprise of 14.29%.Over the last four quarters, th ...

Wall Street analysts forecast that First Hawaiian (FHB) will report quarterly earnings of $0.44 per share in its upcoming release, pointing to a year-over-year decline of 4.4%. It is anticipated that revenues will amount to $204.83 million, exhibiting an increase of 0.8% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 3.8% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initia ...

First Hawaiian (FHB) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Octob ...

Financial Data and Key Metrics - Net interest income was $152.9 million, down $1.6 million from the prior quarter, primarily due to lower average balances of cash and investment securities [8] - Noninterest expenses were $6.7 million lower than the prior quarter, with a quarterly expense run rate expected to remain around $125 million [9] - Noninterest income was $51.8 million, up $400,000 from the prior quarter, with quarterly noninterest income expected to be in the $49 million to $50 million range [30] - Total deposits decreased by $351 million, driven by a $216 million decline in total public deposits [100] - The cost of deposits increased by 5 basis points to 170 basis points, compared to a 9 basis point increase in the first quarter [100] Business Line Data and Key Metrics - Total loans grew by $39.7 million over the prior quarter, driven by draws on existing construction loans and new leasing opportunities [27] - Commercial and industrial (C&I) production increased by about $150 million in dealer floorplan loans, partially offset by paydowns and payoffs of other C&I loans [27] - Consumer loan balances declined due to runoff in the indirect auto portfolio [27] - Commercial real estate (CRE) represents approximately 30% of total loans and leases, with strong credit quality and manageable loan-to-value (LTV) ratios [12] Market Data and Key Metrics - Hawaii's unemployment rate was 2.9% in June, compared to the national rate of 4.1% [4] - The median sales price for a single-family home on Oahu was $1.1 million, up 6.7% from March, while the median sales price for condos was $530,000, down 3.9% from last year [5] - Total visitor arrivals were down 4.1% and spending was down 4.9% compared to 2023 levels, primarily due to a drop in visitors to Maui [25] Company Strategy and Industry Competition - The company expects low-single-digit loan growth for the full year, with production weighted towards the fourth quarter [7] - The company plans to continue running down securities balances and rotating them into loan growth [55] - The company is considering restarting share buybacks in the second half of the year, as capital levels continue to build [74] Management Commentary on Operating Environment and Future Outlook - The company believes the trends seen in the second quarter position it well for a strong second half of the year [26] - The company expects the net interest margin (NIM) to remain relatively flat in the third quarter, with an upward trend supported by balance sheet repricing dynamics, though the timing and pace of rate cuts will impact the absolute level [8] - The company is confident that deposit outflows have stabilized and expects the worst of the shift from noninterest-bearing to interest-bearing deposits to be over [48] Other Important Information - The company sold two criticized shared national credit (SNC) loans at par for a total of $27.5 million in the second quarter as part of its credit monitoring and management process [11] - The company's allowance for credit losses coverage ratio remained unchanged at 1.12% [33] - The company made a $0.25 million donation to Maui, which was matched by the Federal Home Loan Bank for a total of $1 million [43] Q&A Session Summary Question: Loan growth outlook and how the company plans to achieve low-single-digit growth in the second half [15] - The company expects loan production to pick up in the second half, driven by construction loan draws and new leasing opportunities, with less paydown activity compared to the first half [16] Question: Impact of potential Fed rate cuts on net interest income (NII) and NIM [18] - The company expects NIM to decline in the quarter of a rate cut but believes the underlying balance sheet dynamics will support an upward trend in NIM over time, even with rate cuts [53] Question: Core deposit trends and stabilization [48] - The company saw most deposit outflows occur in the first part of the quarter, with the magnitude of noninterest-bearing deposit migration slowing compared to the first quarter, giving confidence in stabilization [48] Question: Securities portfolio yield and potential restructuring [54] - The company plans to continue running down securities balances and rotating them into loan growth, rather than pursuing portfolio restructuring [55] Question: Housing market and HELOC portfolio performance [58] - The housing market remains strong, with limited supply and high demand, leading to stable credit quality in the HELOC portfolio [58][59] Question: Capital return plans, including buybacks and dividends [64] - The company is comfortable with its current dividend payout ratio of around 50% and plans to restart buybacks in the second half of the year [74] Question: Dealer floorplan loan trends and sustainability [69] - The company expects dealer floorplan loan balances to continue rebuilding as inventory levels increase, though there may be some volatility [87] Question: Balance sheet size and funding strategy [71] - The company expects deposit runoff to slow, allowing securities portfolio runoff to fund loan growth without needing external funding [72]

For the quarter ended June 2024, First Hawaiian (FHB) reported revenue of $204.62 million, down 1.3% over the same period last year. EPS came in at $0.48, compared to $0.49 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $202.94 million, representing a surprise of +0.83%. The company delivered an EPS surprise of +14.29%, with the consensus EPS estimate being $0.42. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- an ...

First Hawaiian (FHB) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates two times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on th ...

Noninterest income was $51.8 million in the second quarter of 2024, an increase of $0.4 million compared to noninterest income of $51.4 million in the prior quarter. Noninterest Expense The effective tax rate was 23.3% for the quarters ended June 30, 2024 and March 31, 2024. The allowance for credit losses was $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024, compared to $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024. The reserve for unfunded commitments was ...

First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii's oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and mer ...