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

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

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

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

Core Viewpoint - First Hawaiian, Inc. plans to release its first quarter 2025 financial results on April 23, 2025, before the market opens, followed by a conference call to discuss the results [1] Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be announced on April 23, 2025 [1] - A conference call to discuss the results is scheduled for the same day at 1:00 p.m. Eastern Time [1] Group 2: Conference Call Access - Participants can access the conference call by registering through a provided link to receive a dial-in number and personalized PIN code [2] - It is recommended that participants join the call fifteen minutes early to avoid delays [2] Group 3: Webcast Information - A live webcast of the conference call, including a slide presentation, will be available on the company's website [3] - An archive of the webcast will also be accessible at the same location [3] Group 4: Company Overview - First Hawaiian, Inc. is a bank holding company based in Honolulu, Hawaii, and its principal subsidiary is First Hawaiian Bank, the oldest and largest financial institution in Hawaii [4] - The company offers a wide range of banking services, including deposit products, loans, wealth management, and more [4]

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

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

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

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

Financial Performance - Net income decreased to $52.5 million in Q4 2024 from $61.5 million in Q3 2024 [4] - Diluted earnings per share (EPS) decreased to $0.41 in Q4 2024 from $0.48 in Q3 2024 [4] - Net interest margin increased by 8 basis points to 3.03% in Q4 2024 [5] - The efficiency ratio increased to 65.5% in Q4 2024 from 59.8% in Q3 2024 [4] - Return on average assets (ROA) decreased to 0.88% in Q4 2024 from 1.02% in Q3 2024 [4] - Return on average tangible common equity (ROATCE) decreased to 12.78% in Q4 2024 from 15.35% in Q3 2024 [4] Balance Sheet - Total loans and leases increased by $166.9 million [5] or 1.2% [10] - Total deposits increased by $94.5 million [5] or 0.5% [14] to $20,322.2 million [7] - Sold $290 million of AFS securities and reinvested proceeds into $292 million of securities [9] Capital & Dividends - The CET1 capital ratio was 12.8% [5] - A dividend of $0.26 per share was declared [5]