First Hawaiian(FHB) - 2025 Q1 - Quarterly Results

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].