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 ...

[Financial Highlights & Management Commentary](index=1&type=section&id=First%20Hawaiian%2C%20Inc.%20Reports%20Second%20Quarter%202024%20Financial%20Results%20and%20Declares%20Dividend) First Hawaiian, Inc. reported strong Q2 2024 financial results, including **$61.9 million** net income and a **$0.26** per share dividend [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) First Hawaiian, Inc. reported **$61.9 million** net income and **$0.48** diluted EPS for Q2 2024, driven by strong revenues and credit quality Q2 2024 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Income | $61.9 million | | Diluted EPS | $0.48 | | Total Loans and Leases | Increased $39.7 million vs. prior quarter | | Total Deposits | Decreased $350.6 million vs. prior quarter | | Net Interest Margin | 2.92% (+1 bp vs. prior quarter) | | Provision for Credit Losses | $1.8 million | | Quarterly Dividend | $0.26 per share | - Chairman, President, and CEO Bob Harrison attributed the strong performance to solid revenues, disciplined expense control, and continued excellent credit quality[32](index=32&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.26 per share**, payable on August 30, 2024, to stockholders of record on August 19, 2024[32](index=32&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) The company's Q2 2024 financial performance showed stable net interest income, reduced credit loss provisions, and improved efficiency [Net Interest Income](index=1&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2024 was $152.9 million, a slight decrease of 1.0% from the prior quarter, while net interest margin marginally improved by 1 basis point to 2.92% Net Interest Income and Margin (Q2 2024 vs Q1 2024) | Metric | Q2 2024 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $152.9 million | $154.4 million | -$1.6 million (-1.0%) | | Net Interest Margin | 2.92% | 2.91% | +1 bp | [Provision for Credit Losses](index=1&type=section&id=Provision%20Expense) The company recorded a provision for credit losses of $1.8 million in the second quarter of 2024, a significant decrease from the $6.3 million provision recorded in the first quarter of 2024 - The provision for credit losses was **$1.8 million** for Q2 2024, compared to **$6.3 million** in Q1 2024[40](index=40&type=chunk) [Noninterest Income](index=1&type=section&id=Noninterest%20Income) Noninterest income for Q2 2024 was $51.8 million, showing a slight increase of $0.4 million compared to the $51.4 million reported in the prior quarter - Noninterest income increased to **$51.8 million** in Q2 2024, up from **$51.4 million** in Q1 2024[1](index=1&type=chunk) [Noninterest Expense](index=1&type=section&id=Noninterest%20Expense) Noninterest expense decreased by $6.7 million to $122.1 million in Q2 2024 from $128.8 million in the prior quarter, contributing to an improved efficiency ratio of 59.2% from 62.2% Noninterest Expense and Efficiency Ratio (Q2 2024 vs Q1 2024) | Metric | Q2 2024 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Noninterest Expense | $122.1 million | $128.8 million | -$6.7 million | | Efficiency Ratio | 59.2% | 62.2% | -3.0 p.p. | [Income Taxes](index=1&type=section&id=Taxes) The effective tax rate remained stable at 23.3% for the second quarter of 2024, unchanged from the prior quarter - The effective tax rate was **23.3%** for both the quarters ended June 30, 2024, and March 31, 2024[1](index=1&type=chunk) [Balance Sheet Analysis](index=1&type=section&id=Balance%20Sheet) The balance sheet reflects a decrease in total assets and deposits, a slight increase in loans, and strengthened capital ratios [Assets, Loans, and Deposits](index=1&type=section&id=Assets%2C%20Loans%2C%20and%20Deposits) As of June 30, 2024, total assets and deposits decreased compared to the previous quarter, while gross loans and leases experienced a modest increase, with total assets at **$24.0 billion** and total deposits at **$20.3 billion** Balance Sheet Changes (Q2 2024 vs Q1 2024) | Metric | June 30, 2024 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $24.0 billion | $24.3 billion | -$287.4 million (-1.2%) | | Gross Loans and Leases | $14.4 billion | $14.3 billion | +$39.7 million (+0.3%) | | Total Deposits | $20.3 billion | $20.7 billion | -$350.6 million (-1.7%) | [Capital](index=3&type=section&id=Capital) Total stockholders' equity increased to **$2.6 billion** in Q2 2024, strengthening capital ratios across all categories - Total stockholders' equity increased by **$36.6 million** in Q2 2024, reaching **$2.6 billion**[3](index=3&type=chunk) Capital Ratios (Q2 2024 vs Q1 2024) | Ratio | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Tier 1 Leverage | 9.03% | 8.80% | | Common Equity Tier 1 | 12.73% | 12.55% | | Total Capital | 13.92% | 13.75% | - The Company did not repurchase any shares in the second quarter[3](index=3&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality remained strong in Q2 2024, with stable allowance for credit losses and non-performing assets, and decreased net charge-offs Key Asset Quality Metrics (Q2 2024 vs Q1 2024) | Metric | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Allowance for Credit Losses | $160.5 million | $159.8 million | | ACL / Total Loans & Leases | 1.12% | 1.12% | | Net Charge-offs (annualized) | $2.5 million (0.07%) | $3.8 million (0.11%) | | Total Non-performing Assets | $18.0 million | $18.0 million | | NPA / Total Loans & OREO | 0.13% | 0.13% | - The reserve for unfunded commitments decreased to **$33.4 million** as of June 30, 2024, from **$34.8 million** as of March 31, 2024[2](index=2&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) This section provides comprehensive financial statements, including income, balance sheet, average balances, and detailed portfolio analyses [Financial Highlights (Table 1)](index=5&type=section&id=Table%201%20Financial%20Highlights) Table 1 summarizes Q2 2024 operating results, performance ratios, and per-share data, showing **$61.9 million** net income and **$0.48** diluted EPS Financial Highlights | Operating Results (in thousands) | For the Three Months Ended June 30, 2024 | For the Three Months Ended March 31, 2024 | For the Three Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | | Net interest income | $152,851 | $154,427 | $159,939 | | Net income | $61,921 | $54,220 | $62,442 | | Diluted earnings per share | $0.48 | $0.42 | $0.49 | | **Performance Ratios** | | | | | Net interest margin | 2.92% | 2.91% | 2.91% | | Efficiency ratio | 59.22% | 62.15% | 57.96% | | Return on average total assets | 1.04% | 0.90% | 1.01% | [Selected Financial Data (Table 2)](index=6&type=section&id=Table%202%20Selected%20Financial%20Data) Table 2 presents key balance sheet data, per-share metrics, and capital ratios as of June 30, 2024, including a book value per share of **$19.94** Selected Financial Data (as of June 30, 2024) | Metric | Value | | :--- | :--- | | Total assets | $23,991,791 thousand | | Total deposits | $20,318,832 thousand | | Total stockholders' equity | $2,550,312 thousand | | Book value per share | $19.94 | | Tangible book value per share (non-GAAP) | $12.16 | | Common Equity Tier 1 Capital Ratio | 12.73% | | Total Capital Ratio | 13.92% | [Consolidated Statements of Income (Table 3)](index=7&type=section&id=Table%203%20Consolidated%20Statements%20of%20Income) The consolidated income statement for Q2 2024 shows net income of $61.9 million, an increase from $54.2 million in Q1 2024 but a slight decrease from $62.4 million in Q2 2023, with diluted earnings per share of $0.48 Consolidated Income Statement Summary (in thousands) | Item | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $152,851 | $154,427 | $159,939 | | Provision for credit losses | $1,800 | $6,300 | $5,000 | | Total noninterest income | $51,768 | $51,371 | $47,348 | | Total noninterest expense | $122,086 | $128,813 | $120,881 | | **Net Income** | **$61,921** | **$54,220** | **$62,442** | | **Diluted EPS** | **$0.48** | **$0.42** | **$0.49** | [Consolidated Balance Sheets (Table 3)](index=8&type=section&id=Table%203%20Consolidated%20Balance%20Sheets) As of June 30, 2024, the company's consolidated balance sheet reported total assets of $24.0 billion, a decrease from $24.3 billion at the end of Q1 2024, with total deposits also decreasing to $20.3 billion, while net loans and leases remained relatively stable at $14.2 billion Consolidated Balance Sheet Summary (in thousands) | Item | June 30, 2024 | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | Total Assets | $23,991,791 | $24,279,186 | $24,926,474 | | Net Loans and Leases | $14,199,382 | $14,160,372 | $14,196,964 | | Total Deposits | $20,318,832 | $20,669,481 | $21,332,657 | | Total Stockholders' Equity | $2,550,312 | $2,513,761 | $2,486,066 | [Average Balances and Interest Rates (Tables 4 & 5)](index=9&type=section&id=Tables%204%20%26%205%20Average%20Balances%20and%20Interest%20Rates) These tables detail the average balances, interest income/expense, and yields for earning assets and interest-bearing liabilities, showing total average earning assets of $21.2 billion with a 4.66% yield and a net interest margin of 2.92% for Q2 2024 Q2 2024 Average Balances and Rates | Category | Average Balance (millions) | Yield/Rate | | :--- | :--- | :--- | | Total Earning Assets | $21,247.7 | 4.66% | | Total Loans and Leases | $14,358.0 | 5.67% | | Total Interest-Bearing Liabilities | $13,899.6 | 2.66% | | Total Interest-Bearing Deposits | $13,361.4 | 2.58% | | **Net Interest Spread** | | **2.00%** | | **Net Interest Margin** | | **2.92%** | Six Months Ended June 30, 2024 Average Balances and Rates | Category | Average Balance (millions) | Yield/Rate | | :--- | :--- | :--- | | Total Earning Assets | $21,364.8 | 4.63% | | Total Interest-Bearing Liabilities | $13,881.3 | 2.65% | | **Net Interest Spread** | | **1.98%** | | **Net Interest Margin** | | **2.91%** | [Analysis of Change in Net Interest Income (Tables 6, 7, & 8)](index=12&type=section&id=Tables%206%2C%207%2C%20%26%208%20Analysis%20of%20Change%20in%20Net%20Interest%20Income) These tables break down the change in net interest income by attributing it to changes in volume and rate, showing a $1.5 million decrease compared to Q1 2024 and a $19.6 million decrease year-over-year for the six-month period - QoQ Change in Net Interest Income (vs. Q1 2024): **-$1.5 million**, composed of **-$2.0 million** from volume and **+$0.5 million** from rate[13](index=13&type=chunk) - YoY Change in Net Interest Income (vs. Q2 2023): **-$6.8 million**, composed of **-$6.5 million** from volume and **-$0.3 million** from rate[14](index=14&type=chunk) - YTD Change in Net Interest Income (vs. 6M 2023): **-$19.6 million**, composed of **-$12.7 million** from volume and **-$6.9 million** from rate[15](index=15&type=chunk) [Loan and Lease Portfolio (Table 9)](index=15&type=section&id=Table%209%20Loans%20and%20Leases) The total loan and lease portfolio stood at $14.36 billion as of June 30, 2024, a slight increase from the prior quarter, with significant concentrations in residential loans ($5.38 billion) and commercial real estate ($4.31 billion) Loan and Lease Portfolio Breakdown (in thousands) | Category | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Commercial and industrial | $2,208,690 | $2,189,875 | | Commercial real estate | $4,305,017 | $4,301,300 | | Construction | $1,017,649 | $972,517 | | Total residential | $5,376,249 | $5,408,280 | | Consumer | $1,027,104 | $1,054,227 | | **Total loans and leases** | **$14,359,899** | **$14,320,208** | [Deposit Composition (Table 10)](index=16&type=section&id=Table%2010%20Deposits) Total deposits decreased to $20.32 billion as of June 30, 2024, from $20.67 billion in the prior quarter, primarily due to a decline in noninterest-bearing demand deposits, while money market and time deposits increased Deposit Breakdown (in thousands) | Category | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Demand (Noninterest-bearing) | $6,857,467 | $7,048,553 | | Savings | $6,055,051 | $6,277,679 | | Money Market | $4,111,609 | $4,059,204 | | Time | $3,294,705 | $3,284,045 | | **Total Deposits** | **$20,318,832** | **$20,669,481** | [Non-Performing Assets (Table 11)](index=17&type=section&id=Table%2011%20Non-Performing%20Assets) Total non-performing assets (NPAs) remained stable at $18.0 million as of June 30, 2024, consistent with the previous quarter, with non-accrual loans primarily concentrated in the residential loan portfolio ($13.4 million) Non-Performing Assets Breakdown (in thousands) | Category | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Total Non-Accrual Loans and Leases | $18,013 | $18,017 | | Total Non-Performing Assets | $18,013 | $18,017 | | Accruing Loans Past Due 90+ Days | $3,765 | $3,620 | [Allowance for Credit Losses Analysis (Table 12)](index=18&type=section&id=Table%2012%20Allowance%20for%20Credit%20Losses) The total allowance for credit losses and reserve for unfunded commitments was $193.9 million at quarter-end, with a $1.8 million provision for credit losses and net charge-offs of $2.5 million (0.07% of average loans), covering non-accrual loans by 8.91x Allowance for Credit Losses Roll-Forward (Q2 2024, in thousands) | Item | Amount | | :--- | :--- | | Balance at Beginning of Period | $194,649 | | Net Loans and Leases Charged-Off | ($2,519) | | Provision for Credit Losses | $1,800 | | **Balance at End of Period** | **$193,930** | | *Allowance for Credit Losses* | *$160,517* | | *Reserve for Unfunded Commitments* | *$33,413* | [Loan Portfolio Credit Quality Analysis (Table 13)](index=19&type=section&id=Table%2013%20Credit%20Quality%20of%20Loans%20and%20Leases) Table 13 details loan portfolio credit quality by category and risk, showing strong profiles with most commercial loans rated 'Pass' and high FICO scores for residential and consumer loans - The total commercial lending portfolio of **$7.96 billion** is primarily composed of loans with a 'Pass' risk rating[20](index=20&type=chunk) - In the residential mortgage portfolio of **$4.22 billion**, over **92%** (**$3.87 billion**) belongs to borrowers with FICO scores of **680 or greater**[21](index=21&type=chunk) - The consumer lending portfolio of **$1.03 billion** has over **69%** (**$711 million**) associated with borrowers having FICO scores of **680 or greater**[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to supplement GAAP results, providing additional insights into performance and capital [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures such as return on average tangible assets and tangible book value per share, which management believes are useful for stakeholders to evaluate financial performance and capital adequacy, but should be considered as a supplement to, not a substitute for, GAAP results - The company uses non-GAAP measures like return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share, and tangible stockholders' equity to tangible assets[25](index=25&type=chunk) - These measures are presented because management believes they are useful for evaluating financial performance and capital adequacy, but they have limitations and should not be viewed in isolation[25](index=25&type=chunk) - A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures is provided in Table 14[26](index=26&type=chunk) [GAAP to Non-GAAP Reconciliation (Table 14)](index=21&type=section&id=Table%2014%20GAAP%20to%20Non-GAAP%20Reconciliation) This table provides a detailed reconciliation of GAAP measures to their non-GAAP counterparts by excluding goodwill, showing a Q2 2024 return on average tangible stockholders' equity (non-GAAP) of 16.42% compared to the GAAP return of 9.91%, and a tangible book value per share of $12.16 GAAP vs. Non-GAAP Ratios (Q2 2024) | Ratio | GAAP | Non-GAAP (Tangible) | | :--- | :--- | :--- | | Return on average stockholders' equity | 9.91% | 16.42% | | Return on average assets | 1.04% | 1.08% | | Book value per share | $19.94 | $12.16 | [Company and Conference Call Information](index=3&type=section&id=Company%20and%20Conference%20Call%20Information) This section provides an overview of First Hawaiian, Inc., details conference call access, and outlines forward-looking statement disclaimers [Company Overview](index=3&type=section&id=First%20Hawaiian%2C%20Inc.) First Hawaiian, Inc. is the Honolulu-based bank holding company for First Hawaiian Bank, Hawaii's oldest and largest financial institution, providing a comprehensive suite of banking services to consumers and businesses throughout Hawaii, Guam, and Saipan - First Hawaiian, Inc. is the holding company for First Hawaiian Bank, Hawaii's oldest and largest financial institution[4](index=4&type=chunk) - The company offers a full range of banking services, including deposit products, loans, wealth management, insurance, and credit card services[4](index=4&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company hosted a conference call to discuss its Q2 2024 results on the day of the earnings release, with a live webcast and slide presentation made available on its website, where an archive is also accessible - A conference call was held at 1:00 p.m. Eastern Time / 7:00 a.m. Hawaii Time to discuss the results[5](index=5&type=chunk) - Registration links for phone access and a live webcast were provided for participants[6](index=6&type=chunk)[23](index=23&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially from expectations - The report contains forward-looking statements that are not historical facts and are subject to risks, assumptions, and uncertainties[7](index=7&type=chunk) - The company cautions that these statements are not guarantees of future performance and that actual results may differ materially[7](index=7&type=chunk) - For a discussion of risks and important factors, readers are referred to the company's SEC filings, including its Form 10-K and 10-Q reports[7](index=7&type=chunk)

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 ...