[Executive Summary & Dividend Declaration](index=1&type=section&id=Executive%20Summary%20%26%20Dividend%20Declaration) [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) First Hawaiian, Inc. achieved strong financial performance in Q2 2025, with net income increasing by 23.6% quarter-over-quarter to $73.2 million, driven by revenue growth, expense control, and sustained excellent credit quality - Company's Q2 2025 net income was **$73.2 million**, up **23.6%** from Q1[2](index=2&type=chunk) - Performance driven by strong revenue, good expense control, and sustained excellent credit quality[2](index=2&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The company's Board of Directors declared a quarterly cash dividend of $0.26 per share - The Board of Directors declared a quarterly cash dividend of **$0.26 per share** on July 23, 2025[2](index=2&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) In Q2 2025, the company saw significant growth in net income and diluted EPS, improved net interest margin, reduced provision for credit losses, and a lower effective tax rate due to California tax law changes 2025 Second Quarter Key Financial Metrics | Metric | Q2 2025 | Q-o-Q Change | Q-o-Q Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | | Net Income | $73.2 million | +$14.0 million | +23.6% | chunk_num:[2, 10, 20] | | Diluted EPS | $0.58 | +$0.11 | +23.4% | chunk_num:[10, 20, 23] | | Net Interest Margin (NIM) | 3.11% | +3 basis points | - | chunk_num:[6, 10, 20] | | Provision for Credit Losses | $4.5 million | -$6.0 million | -57.1% | chunk_num:[7, 10, 20] | | Effective Tax Rate | 16.9% | -6.1 percentage points | - | chunk_num:[11, 20] | - The decrease in effective tax rate was primarily due to a **$5.1 million net benefit** from the re-measurement of deferred tax assets resulting from recent California tax law changes[10](index=10&type=chunk)[11](index=11&type=chunk) [Balance Sheet Highlights](index=1&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, the company's total assets, loans and leases, and deposits all showed slight growth, indicating stable asset expansion 2025 Second Quarter Balance Sheet Highlights | Metric | June 30, 2025 | March 31, 2025 | Q-o-Q Change | Q-o-Q Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | $23.8 billion | $23.7 billion | +$0.1 billion | +0.4% | chunk_num:[4, 21, 24] | | Total Loans and Leases | $14.4 billion | $14.3 billion | +$58.8 million | +0.4% | chunk_num:[4, 10, 21, 24] | | Total Deposits | $20.2 billion | $20.2 billion | +$15.6 million | +0.1% | chunk_num:[5, 10, 21, 24] | [Income Statement Highlights](index=1&type=section&id=Income%20Statement%20Highlights) In Q2 2025, the company experienced growth in both net interest income and non-interest income, alongside an improved efficiency ratio, reflecting enhanced profitability and operational effectiveness 2025 Second Quarter Income Statement Highlights | Metric | Q2 2025 | Q1 2025 | Q-o-Q Change | Q-o-Q Change Rate | Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $163.6 million | $160.5 million | +$3.1 million | +1.9% | chunk_num:[6, 20, 23] | | Non-Interest Income | $54.0 million | $50.5 million | +$3.5 million | +6.9% | chunk_num:[8, 20, 23] | | Non-Interest Expense | $124.9 million | $123.6 million | +$1.3 million | +1.1% | chunk_num:[9, 20, 23] | | Efficiency Ratio | 57.2% | 58.2% | -1.0 percentage points | - | chunk_num:[9, 20] | [Asset Quality & Capital Highlights](index=2&type=section&id=Asset%20Quality%20%26%20Capital%20Highlights) The company maintained robust asset quality in Q2 2025 with ample allowance for credit losses, a lower net charge-off rate, and improved capital ratios, while returning capital to shareholders through share repurchases 2025 Second Quarter Asset Quality & Capital Highlights | Metric | June 30, 2025 | March 31, 2025 | Q-o-Q Change | Source | | :--- | :--- | :--- | :--- | :--- | | Allowance for Credit Losses (ACL) | $167.8 million | $166.6 million | +$1.2 million | chunk_num:[12, 21, 37] | | ACL as % of Total Loans and Leases | 1.17% | 1.17% | 0 basis points | chunk_num:[12, 21, 37] | | Net Charge-Offs | $3.3 million | $3.8 million | -$0.5 million | chunk_num:[12, 37] | | Net Charge-Off Rate (Annualized) | 0.09% | 0.11% | -0.02 percentage points | chunk_num:[12, 37] | | Total Non-Performing Assets | $28.6 million | $20.2 million | +$8.4 million | chunk_num:[12, 36] | | Non-Performing Assets as % of Total Loans and Leases | 0.20% | 0.14% | +0.06 percentage points | chunk_num:[12, 21] | | Total Shareholders' Equity | $2.7 billion | $2.6 billion | +$0.1 billion | chunk_num:[13, 21, 24] | | Tier 1 Leverage Ratio | 9.12% | 9.01% | +0.11 percentage points | chunk_num:[13, 21] | | Common Equity Tier 1 Ratio | 13.03% | 12.93% | +0.10 percentage points | chunk_num:[13, 21] | | Total Capital Ratio | 14.28% | 14.17% | +0.11 percentage points | chunk_num:[13, 21] | - The company repurchased **1.04 million shares** of common stock for a total cost of **$25 million** at an average price of **$23.99 per share** during the second quarter[13](index=13&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) [About First Hawaiian, Inc.](index=2&type=section&id=About%20First%20Hawaiian%2C%20Inc.) First Hawaiian, Inc. is a bank holding company headquartered in Honolulu, Hawaii, with its primary subsidiary, First Hawaiian Bank, being the oldest and largest financial institution in Hawaii, offering comprehensive banking services - First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii[14](index=14&type=chunk) - Its primary subsidiary, First Hawaiian Bank, founded in 1858, is the oldest and largest financial institution in Hawaii, with branches in Hawaii, Guam, and Saipan[14](index=14&type=chunk) - The company provides comprehensive banking services to consumers and commercial clients, including deposit products, loans, wealth management, insurance, trust, retirement planning, credit cards, and merchant processing services[14](index=14&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) The company will host a conference call on July 25, 2025, to discuss its second-quarter results, with dial-in and webcast links provided - First Hawaiian will host a conference call on **July 25, 2025, at 1:00 PM ET (7:00 AM HT)** to discuss the company's results[15](index=15&type=chunk) - A live webcast of the conference call, including a slide presentation, will be available on the company's website at www.fhb.com/earnings[16](index=16&type=chunk) [Disclosures](index=3&type=section&id=Disclosures) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, based on current expectations and estimates, but subject to various risks and uncertainties that could cause actual results to differ materially - This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, reflecting the company's current views on future events and financial performance[17](index=17&type=chunk) - These statements are not historical facts and are based on current expectations, estimates, and management beliefs, carrying inherent uncertainties where actual results may differ materially from forward-looking statements[17](index=17&type=chunk) - Important risk factors include domestic and global economic conditions and capital market conditions, with more information available in the company's filings with the U.S. Securities and Exchange Commission (SEC)[17](index=17&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures (such as return on average tangible assets, return on average tangible common equity, tangible book value per share, and tangible common equity to tangible assets ratio) to assess financial performance and capital adequacy, providing reconciliations to the most directly comparable GAAP measures - The company uses non-GAAP financial measures such as return on average tangible assets, return on average tangible common equity, tangible book value per share, and tangible common equity to tangible assets ratio[18](index=18&type=chunk) - The company believes these metrics are useful for investors, regulators, and management in evaluating financial performance and capital adequacy[18](index=18&type=chunk) - These non-GAAP measures have limitations and should not be viewed in isolation or as a substitute for GAAP reported results; reconciliations to the most directly comparable GAAP measures can be found in Table 14 at the end of the document[18](index=18&type=chunk)[19](index=19&type=chunk) [Detailed Financial Tables](index=4&type=section&id=Detailed%20Financial%20Tables) [Financial Highlights (Table 1)](index=4&type=section&id=Financial%20Highlights%20%28Table%201%29) Table 1 provides comprehensive financial highlights for the company's Q2 2025 and prior periods, covering key data such as operating results, performance ratios, average balances, and market value per share, illustrating financial trends and performance across different timeframes Financial Highlights Overview (Q2 2025) | Metric | June 30, 2025 (Three Months) | March 31, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income (USD thousands) | $163,583 | $160,526 | $152,851 | $324,109 | $307,278 | | Provision for Credit Losses (USD thousands) | $4,500 | $10,500 | $1,800 | $15,000 | $8,100 | | Non-Interest Income (USD thousands) | $53,958 | $50,477 | $51,768 | $104,435 | $103,139 | | Non-Interest Expense (USD thousands) | $124,939 | $123,560 | $122,086 | $248,499 | $250,899 | | Net Income (USD thousands) | $73,247 | $59,248 | $61,921 | $132,495 | $116,141 | | Diluted EPS | $0.58 | $0.47 | $0.48 | $1.05 | $0.91 | | Dividends Declared Per Share | $0.26 | $0.26 | $0.26 | $0.52 | $0.52 | | Net Interest Margin | 3.11% | 3.08% | 2.92% | 3.10% | 2.91% | | Efficiency Ratio | 57.23% | 58.22% | 59.22% | 57.71% | 60.69% | | Return on Average Total Assets | 1.23% | 1.01% | 1.04% | 1.12% | 0.97% | | Return on Average Tangible Assets (Non-GAAP) | 1.28% | 1.05% | 1.08% | 1.17% | 1.01% | | Return on Average Total Shareholders' Equity | 11.03% | 9.09% | 9.91% | 10.07% | 9.32% | | Return on Average Tangible Shareholders' Equity (Non-GAAP) | 17.61% | 14.59% | 16.42% | 16.12% | 15.48% | | Average Loans and Leases (USD thousands) | $14,288,918 | $14,309,998 | $14,358,049 | $14,299,400 | $14,335,306 | | Average Deposits (USD thousands) | $20,280,042 | $20,354,040 | $20,308,028 | $20,316,836 | $20,439,979 | | Stock Closing Price | $24.96 | $24.44 | $20.76 | $24.96 | $20.76 | Balance Sheet and Capital Ratios Highlights (Period End) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Loans and Leases (USD thousands) | $14,351,869 | $14,293,036 | $14,408,258 | $14,359,899 | | Total Assets (USD thousands) | $23,837,147 | $23,744,958 | $23,828,186 | $23,991,791 | | Total Deposits (USD thousands) | $20,231,419 | $20,215,816 | $20,322,216 | $20,318,832 | | Total Shareholders' Equity (USD thousands) | $2,694,545 | $2,648,852 | $2,617,486 | $2,550,312 | | Common Equity Tier 1 Ratio | 13.03% | 12.93% | 12.80% | 12.73% | | Tier 1 Capital Ratio | 13.03% | 12.93% | 12.80% | 12.73% | | Total Capital Ratio | 14.28% | 14.17% | 13.99% | 13.92% | | Tier 1 Leverage Ratio | 9.12% | 9.01% | 9.14% | 9.03% | | Shareholders' Equity to Total Assets Ratio | 11.30% | 11.16% | 10.98% | 10.63% | | Tangible Shareholders' Equity to Tangible Assets Ratio (Non-GAAP) | 7.44% | 7.27% | 7.10% | 6.76% | | Book Value Per Share | $21.61 | $21.07 | $20.70 | $19.94 | | Tangible Book Value Per Share (Non-GAAP) | $13.63 | $13.15 | $12.83 | $12.16 | [Consolidated Statements of Income (Table 2)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20%28Table%202%29) The consolidated statements of income detail the company's interest income, interest expense, non-interest income, non-interest expense, and ultimately net income and earnings per share for Q2 2025 and prior periods, reflecting the composition and changes in the company's profitability Consolidated Statements of Income (in thousands of USD) | Metric | June 30, 2025 (Three Months) | March 31, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $236,739 | $235,150 | $244,934 | $471,889 | $489,886 | | Total Interest Expense | $73,156 | $74,624 | $92,083 | $147,780 | $182,608 | | Net Interest Income | $163,583 | $160,526 | $152,851 | $324,109 | $307,278 | | Provision for Credit Losses | $4,500 | $10,500 | $1,800 | $15,000 | $8,100 | | Net Interest Income Less Provision for Credit Losses | $159,083 | $150,026 | $151,051 | $309,109 | $299,178 | | Total Non-Interest Income | $53,958 | $50,477 | $51,768 | $104,435 | $103,139 | | Total Non-Interest Expense | $124,939 | $123,560 | $122,086 | $248,499 | $250,899 | | Income Before Income Taxes | $88,102 | $76,943 | $80,733 | $165,045 | $151,418 | | Income Tax Provision | $14,855 | $17,695 | $18,812 | $32,550 | $35,277 | | Net Income | $73,247 | $59,248 | $61,921 | $132,495 | $116,141 | | Diluted EPS | $0.58 | $0.47 | $0.48 | $1.05 | $0.91 | [Consolidated Balance Sheets (Table 3)](index=7&type=section&id=Consolidated%20Balance%20Sheets%20%28Table%203%29) The consolidated balance sheets provide a detailed breakdown of the company's assets, liabilities, and shareholders' equity as of June 30, 2025, and prior period ends, reflecting the company's financial position and capital structure Consolidated Balance Sheets (in thousands of USD) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Cash and Due from Banks | $304,624 | $240,738 | $258,057 | $290,501 | | Interest-Bearing Deposits in Banks | $1,094,411 | $1,073,841 | $912,133 | $824,258 | | Investment Securities Available for Sale | $1,891,654 | $1,858,428 | $1,926,516 | $2,067,956 | | Investment Securities Held to Maturity | $3,658,814 | $3,724,908 | $3,790,650 | $3,917,175 | | Loans and Leases | $14,351,869 | $14,293,036 | $14,408,258 | $14,359,899 | | Less: Allowance for Credit Losses | $167,825 | $166,612 | $160,393 | $160,517 | | Net Loans and Leases | $14,184,044 | $14,126,424 | $14,247,865 | $14,199,382 | | Total Assets | $23,837,147 | $23,744,958 | $23,828,186 | $23,991,791 | | Interest-Bearing Deposits | $13,386,987 | $13,330,265 | $13,347,068 | $13,461,365 | | Non-Interest-Bearing Deposits | $6,844,432 | $6,885,551 | $6,975,148 | $6,857,467 | | Total Deposits | $20,231,419 | $20,215,816 | $20,322,216 | $20,318,832 | | Short-Term Borrowings | $250,000 | $250,000 | $250,000 | $500,000 | | Total Liabilities | $21,142,602 | $21,096,106 | $21,210,700 | $21,441,479 | | Total Shareholders' Equity | $2,694,545 | $2,648,852 | $2,617,486 | $2,550,312 | | Total Liabilities and Shareholders' Equity | $23,837,147 | $23,744,958 | $23,828,186 | $23,991,791 | [Average Balances and Interest Rates (Tables 4 & 5)](index=8&type=section&id=Average%20Balances%20and%20Interest%20Rates%20%28Tables%204%20%26%205%29) Tables 4 and 5 detail the company's average balances, income/expense, and corresponding yields/rates for interest-earning assets and interest-bearing liabilities across different periods, revealing the composition and trends of net interest margin and interest rate spread Average Balances and Interest Rates (Q2 2025, in millions of USD) | Metric | Average Balance (USD millions) | Income/Expense (USD millions) | Yield/Rate | | :--- | :--- | :--- | :--- | | Interest-Bearing Deposits in Banks | $1,276.8 | $14.1 | 4.45% | | Total Investment Securities | $5,567.0 | $29.0 | 2.08% | | Total Loans and Leases | $14,288.9 | $194.0 | 5.44% | | Total Interest-Earning Assets | $21,167.6 | $237.5 | 4.50% | | Total Interest-Bearing Deposits | $13,459.0 | $70.3 | 2.09% | | Total Interest-Bearing Liabilities | $13,729.8 | $73.1 | 2.14% | | Net Interest Income | - | $164.4 | - | | Interest Rate Spread | - | - | 2.36% | | Net Interest Margin | - | - | 3.11% | Average Balances and Interest Rates (First Half 2025, in millions of USD) | Metric | Average Balance (USD millions) | Income/Expense (USD millions) | Yield/Rate | | :--- | :--- | :--- | :--- | | Interest-Bearing Deposits in Banks | $1,224.3 | $27.0 | 4.44% | | Total Investment Securities | $5,611.1 | $59.4 | 2.12% | | Total Loans and Leases | $14,299.4 | $386.7 | 5.44% | | Total Interest-Earning Assets | $21,168.4 | $473.9 | 4.50% | | Total Interest-Bearing Deposits | $13,465.4 | $142.0 | 2.13% | | Total Interest-Bearing Liabilities | $13,739.5 | $147.8 | 2.17% | | Net Interest Income | - | $326.1 | - | | Interest Rate Spread | - | - | 2.33% | | Net Interest Margin | - | - | 3.10% | [Analysis of Change in Net Interest Income (Tables 6, 7 & 8)](index=10&type=section&id=Analysis%20of%20Change%20in%20Net%20Interest%20Income%20%28Tables%206%2C%207%20%26%208%29) Tables 6, 7, and 8 analyze changes in net interest income, breaking down the impact of volume and rate changes for assets and liabilities, providing quarter-over-quarter and year-over-year comparisons to reveal specific drivers of net interest income growth or decline Analysis of Change in Net Interest Income (Q2 2025 vs. Q1 2025, in millions of USD) | Change Source | Volume Impact (USD millions) | Rate Impact (USD millions) | Total (USD millions) | | :--- | :--- | :--- | :--- | | Total Interest Income Change | $2.0 | -$0.9 | $1.1 | | Total Interest Expense Change | $0.3 | -$1.8 | -$1.5 | | Net Interest Income Change | $1.7 | $0.9 | $2.6 | Analysis of Change in Net Interest Income (Q2 2025 vs. Q2 2024, in millions of USD) | Change Source | Volume Impact (USD millions) | Rate Impact (USD millions) | Total (USD millions) | | :--- | :--- | :--- | :--- | | Total Interest Income Change | $2.6 | -$11.6 | -$9.0 | | Total Interest Expense Change | -$2.8 | -$16.2 | -$19.0 | | Net Interest Income Change | $5.4 | $4.6 | $10.0 | Analysis of Change in Net Interest Income (First Half 2025 vs. First Half 2024, in millions of USD) | Change Source | Volume Impact (USD millions) | Rate Impact (USD millions) | Total (USD millions) | | :--- | :--- | :--- | :--- | | Total Interest Income Change | $2.4 | -$21.4 | -$19.0 | | Total Interest Expense Change | -$5.2 | -$29.6 | -$34.8 | | Net Interest Income Change | $7.6 | $8.2 | $15.8 | [Loans and Leases (Table 9)](index=13&type=section&id=Loans%20and%20Leases%20%28Table%209%29) Table 9 provides a detailed breakdown of the company's loan and lease portfolio, including commercial and industrial, commercial real estate, construction, residential (mortgage and home equity), and consumer and lease financing, showing balances and changes across different reporting period ends Loans and Leases Portfolio (in thousands of USD) | Loan Category | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial | $2,370,210 | $2,261,394 | $2,247,428 | $2,208,690 | | Commercial Real Estate | $4,411,585 | $4,367,433 | $4,463,992 | $4,305,017 | | Construction | $884,306 | $954,072 | $918,326 | $1,017,649 | | Residential Mortgage | $4,085,827 | $4,129,518 | $4,168,154 | $4,216,416 | | Home Equity | $1,161,876 | $1,144,895 | $1,151,739 | $1,159,833 | | Consumer | $1,011,125 | $998,325 | $1,023,969 | $1,027,104 | | Lease Financing | $426,940 | $437,399 | $434,650 | $425,190 | | Total Loans and Leases | $14,351,869 | $14,293,036 | $14,408,258 | $14,359,899 | [Deposits (Table 10)](index=14&type=section&id=Deposits%20%28Table%2010%29) Table 10 presents a detailed classification of the company's deposits, including non-interest-bearing, savings, money market, and time deposits, reflecting the composition of the company's deposit base and changes at different reporting period ends Deposits Portfolio (in thousands of USD) | Deposit Category | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Non-Interest-Bearing Deposits | $6,844,432 | $6,885,551 | $6,975,148 | $6,857,467 | | Savings Deposits | $6,219,801 | $6,110,796 | $6,021,364 | $6,055,051 | | Money Market Deposits | $3,777,681 | $3,865,203 | $4,027,334 | $4,111,609 | | Time Deposits | $3,389,505 | $3,354,266 | $3,298,370 | $3,294,705 | | Total Deposits | $20,231,419 | $20,215,816 | $20,322,216 | $20,318,832 | [Non-Performing Assets and Accruing Loans and Leases Past Due (Table 11)](index=15&type=section&id=Non-Performing%20Assets%20and%20Accruing%20Loans%20and%20Leases%20Past%20Due%20%28Table%2011%29) Table 11 details the composition of the company's non-performing assets and accruing loans and leases past due 90 days or more, including breakdowns for commercial and residential loans, reflecting the status and changes in the company's asset quality Non-Performing Assets and Accruing Loans and Leases Past Due (in thousands of USD) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Non-Performing Loans and Leases | $28,591 | $20,188 | $20,679 | $18,013 | | Total Non-Performing Assets | $28,591 | $20,188 | $20,679 | $18,013 | | Total Accruing Loans and Leases Past Due 90 Days or More | $4,438 | $4,302 | $6,019 | $3,765 | | Total Loans and Leases | $14,351,869 | $14,293,036 | $14,408,258 | $14,359,899 | [Allowance for Credit Losses](index=16&type=section&id=Allowance%20for%20Credit%20Losses) This section provides an analysis of changes in the allowance for credit losses, including beginning balances, loan and lease charge-offs, recoveries of charged-off loans and leases, and the provision for credit losses, demonstrating the company's credit risk management and reserve coverage Allowance for Credit Losses Changes (in thousands of USD) | Metric | June 30, 2025 (Three Months) | March 31, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $199,959 | $193,240 | $194,649 | $193,240 | $192,138 | | Total Loan and Lease Charge-Offs | -$5,329 | -$6,498 | -$4,859 | -$11,827 | -$10,622 | | Total Recoveries of Charged-Off Loans and Leases | $2,042 | $2,717 | $2,340 | $4,759 | $4,314 | | Net Charge-Offs on Loans and Leases | -$3,287 | -$3,781 | -$2,519 | -$7,068 | -$6,308 | | Provision for Credit Losses | $4,500 | $10,500 | $1,800 | $15,000 | $8,100 | | Ending Balance | $201,172 | $199,959 | $193,930 | $201,172 | $193,930 | | Allowance for Credit Losses | $167,825 | $166,612 | $160,517 | $167,825 | $160,517 | | Reserve for Unfunded Commitments | $33,347 | $33,347 | $33,413 | $33,347 | $33,413 | | Net Charge-Offs on Loans and Leases as % of Average Loans and Leases | 0.09% | 0.11% | 0.07% | 0.10% | 0.09% | | Allowance for Credit Losses as % of Loans and Leases | 1.17% | 1.17% | 1.12% | 1.17% | 1.12% | | Allowance for Credit Losses to Non-Performing Loans and Leases | 5.87x | 8.25x | 8.91x | 5.87x | 8.91x | [Loans and Leases by Year of Origination and Credit Quality Indicator (Table 13)](index=17&type=section&id=Loans%20and%20Leases%20by%20Year%20of%20Origination%20and%20Credit%20Quality%20Indicator%20%28Table%2013%29) Table 13 categorizes the company's loan and lease portfolio by year of origination and credit quality indicators (such as risk ratings and FICO scores), including commercial, residential, and consumer loans, offering in-depth insights into the risk characteristics of the loan portfolio Commercial Loan Portfolio by Risk Rating and Year of Origination (in thousands of USD) | Loan Category | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving | Converted to Term | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Commercial and Industrial | $87,223 | $155,681 | $73,653 | $175,502 | $196,945 | $263,817 | $1,396,245 | $21,144 | $2,370,210 | | Total Commercial Real Estate | $169,890 | $299,585 | $376,971 | $860,568 | $698,090 | $1,886,130 | $112,763 | $7,588 | $4,411,585 | | Total Construction | $13,028 | $156,164 | $214,176 | $290,283 | $135,955 | $52,842 | $21,858 | - | $884,306 | | Total Lease Financing | $75,371 | $92,505 | $97,059 | $52,552 | $12,574 | $96,879 | - | - | $426,940 | | Total Commercial Loans | $345,512 | $703,935 | $761,859 | $1,378,905 | $1,043,564 | $2,299,668 | $1,530,866 | $28,732 | $8,093,041 | Residential Loan Portfolio by FICO Score and Year of Origination (in thousands of USD) | Loan Category | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving | Converted to Term | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Residential Mortgage | $99,901 | $193,406 | $237,049 | $596,946 | $1,069,157 | $1,886,306 | $3,062 | - | $4,085,827 | | Total Home Equity Loans | - | - | - | - | - | - | $1,157,419 | $4,457 | $1,161,876 | | Total Residential Loans | $99,901 | $193,406 | $237,049 | $596,946 | $1,069,157 | $1,886,306 | $1,160,481 | $4,457 | $5,247,703 | Consumer Loan Portfolio by FICO Score and Year of Origination (in thousands of USD) | Loan Category | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving | Converted to Term | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Consumer Loans | $128,069 | $175,864 | $115,293 | $128,216 | $62,479 | $28,489 | $369,615 | $3,100 | $1,011,125 | [GAAP to Non-GAAP Reconciliation (Table 14)](index=19&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20%28Table%2014%29) Table 14 provides a reconciliation of GAAP to non-GAAP financial measures, detailing how goodwill is deducted from GAAP metrics (such as total shareholders' equity and total assets) to calculate corresponding tangible metrics, offering investors a clearer view of capital adequacy and profitability GAAP to Non-GAAP Reconciliation (Quarterly, in thousands of USD) | Metric | June 30, 2025 (Three Months) | March 31, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (USD thousands) | $73,247 | $59,248 | $61,921 | $132,495 | $116,141 | | Average Total Shareholders' Equity (USD thousands) | $2,663,850 | $2,641,978 | $2,512,471 | $2,652,975 | $2,504,656 | | Less: Average Goodwill (USD thousands) | $995,492 | $995,492 | $995,492 | $995,492 | $995,492 | | Average Tangible Shareholders' Equity (USD thousands) | $1,668,358 | $1,646,486 | $1,516,979 | $1,657,483 | $1,509,164 | | Average Total Assets (USD thousands) | $23,859,410 | $23,890,459 | $23,958,913 | $23,874,849 | $24,073,060 | | Less: Average Goodwill (USD thousands) | $995,492 | $995,492 | $995,492 | $995,492 | $995,492 | | Average Tangible Assets (USD thousands) | $22,863,918 | $22,894,967 | $22,963,421 | $22,879,357 | $23,077,568 | | Return on Average Total Shareholders' Equity | 11.03% | 9.09% | 9.91% | 10.07% | 9.32% | | Return on Average Tangible Shareholders' Equity (Non-GAAP) | 17.61% | 14.59% | 16.42% | 16.12% | 15.48% | | Return on Average Total Assets | 1.23% | 1.01% | 1.04% | 1.12% | 0.97% | | Return on Average Tangible Assets (Non-GAAP) | 1.28% | 1.05% | 1.08% | 1.17% | 1.01% | GAAP to Non-GAAP Reconciliation (Period End, in thousands of USD) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Shareholders' Equity (USD thousands) | $2,694,545 | $2,648,852 | $2,617,486 | $2,550,312 | | Less: Goodwill (USD thousands) | $995,492 | $995,492 | $995,492 | $995,492 | | Tangible Shareholders' Equity (USD thousands) | $1,699,053 | $1,653,360 | $1,621,994 | $1,554,820 | | Total Assets (USD thousands) | $23,837,147 | $23,744,958 | $23,828,186 | $23,991,791 | | Less: Goodwill (USD thousands) | $995,492 | $995,492 | $995,492 | $995,492 | | Tangible Assets (USD thousands) | $22,841,655 | $22,749,466 | $22,832,694 | $22,996,299 | | Shareholders' Equity to Total Assets Ratio | 11.30% | 11.16% | 10.98% | 10.63% | | Tangible Shareholders' Equity to Tangible Assets Ratio (Non-GAAP) | 7.44% | 7.27% | 7.10% | 6.76% | | Book Value Per Share | $21.61 | $21.07 | $20.70 | $19.94 | | Tangible Book Value Per Share (Non-GAAP) | $13.63 | $13.15 | $12.83 | $12.16 |

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]

Financial Performance - Interest income for Q1 2025 was $235,150,000, a decrease of 4.9% from $244,952,000 in Q1 2024[223] - Net interest income increased to $160,526,000, up 4.5% from $154,427,000 in the same period last year[223] - Net income for Q1 2025 was $59,248,000, representing a 9.4% increase compared to $54,220,000 in Q1 2024[223] - Basic earnings per share rose to $0.47, an increase of 11.9% from $0.42 in the prior year[223] - The dividend payout ratio improved to 55.32% from 61.90% in Q1 2024[223] - The efficiency ratio improved to 58.22%, compared to 62.15% in Q1 2024[223] - Return on average total assets increased to 1.01%, up from 0.90% in the previous year[223] Loan and Deposit Metrics - Total loans and leases were $14.3 billion as of March 31, 2025, a decrease of $115.2 million or 1% from December 31, 2024[229] - Total deposits were $20.2 billion as of March 31, 2025, a decrease of $106.4 million or 1% from December 31, 2024[232] - Core deposits totaled $18.8 billion as of March 31, 2025, representing 93% of total deposits, a slight decrease from $19.0 billion as of December 31, 2024[268] - The geographic distribution of total loans and leases shows 68% concentrated in Hawaii, 24% in the U.S. mainland, and 7% in Guam and Saipan as of March 31, 2025[302] Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) was $166.6 million as of March 31, 2025, an increase of $6.2 million or 4% from December 31, 2024[240] - The Allowance for Credit Losses (ACL) was $166.6 million or 1.17% of total loans and leases outstanding as of March 31, 2025, compared to $160.4 million or 1.11% as of December 31, 2024[319] - Net charge-offs of loans and leases were $3.8 million or 0.11% of total average loans and leases for the three months ended March 31, 2025[320] - Total Non-Performing Assets (NPAs) were $20.2 million as of March 31, 2025, a decrease of $0.5 million or 2% from December 31, 2024[310] Noninterest Income and Expense - Total noninterest income for the three months ended March 31, 2025, was $50.5 million, a decrease of $0.9 million or 2% compared to the same period in 2024[242] - Credit and debit card fees decreased by $1.7 million or 11% to $14.5 million, primarily due to a $1.4 million decrease in interchange settlement fees[243] - Other service charges and fees increased by $2.3 million or 23% to $12.2 million, mainly driven by a $2.1 million increase in fees from annuities and securities[244] - Total noninterest expense was $123.6 million for the three months ended March 31, 2025, a decrease of $5.3 million or 4% compared to the same period in 2024[247] Capital and Equity - Common Equity Tier 1 (CET1) capital ratio was 12.93% as of March 31, 2025, an increase of 13 basis points from December 31, 2024[228] - Total stockholders' equity was $2.6 billion, an increase of $31.4 million or 1% from December 31, 2024, primarily due to earnings of $59.2 million[342] Economic Indicators - The unemployment rate in Hawaii decreased to 2.9% as of March 31, 2025, down from 3.1% a year earlier[217] - The median price of a single-family home sold on Oahu increased by 7.5% to $1,150,000 in Q1 2025 compared to Q1 2024[219] Investment Securities - The carrying values of available-for-sale investment securities were $1.9 billion and held-to-maturity investment securities were $3.7 billion as of March 31, 2025[267] - The investment securities portfolio included $3.1 billion in collateralized mortgage obligations and $2.3 billion in mortgage-backed securities as of March 31, 2025[283] Risk Management - Interest rate risk is primarily derived from the bank's core business activities of extending loans and accepting deposits[355] - The bank's interest rate risk management process aims to maximize net interest income while maintaining adequate levels of funding and liquidity[368]

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].