First Hawaiian(FHB) - 2024 Q4 - Annual Results

Financial Performance - Net income for the year ended December 31, 2024, was $230,129 thousand, down from $234,983 thousand in 2023, a decrease of 2.0%[23] - Net income for Q4 2024 was $52,496,000, down from $61,492,000 in Q3 2024, representing a decrease of 16.3%[25] - Basic earnings per share for Q4 2024 was $0.41, compared to $0.48 in Q4 2023, reflecting a decline of 14.6%[23] - Return on average total assets for Q4 2024 was 0.88%, down from 1.02% in Q3 2024, indicating a decline in asset efficiency[42] Assets and Liabilities - Total assets reached $23.8 billion as of December 31, 2024, unchanged from September 30, 2024[5] - Total assets as of December 31, 2024, were $23,828,186 thousand, slightly down from $24,926,474 thousand as of December 31, 2023, a decrease of 4.4%[24] - Total liabilities as of December 31, 2024, were $21,210,700,000, a slight increase from $21,132,251,000 as of September 30, 2024[26] - Stockholders' equity decreased to $2,617,486,000 as of December 31, 2024, from $2,648,034,000 as of September 30, 2024[26] Loans and Deposits - Gross loans and leases increased by $166.9 million, or 1.2%, to $14.4 billion compared to the prior quarter[5] - Total deposits rose by $94.5 million, or 0.5%, to $20.3 billion from the previous quarter[5] - Total loans and leases amounted to $14,408,258 thousand as of December 31, 2024, showing an increase from $14,241,370 thousand as of September 30, 2024[35] - Total deposits reached $20,322,216 thousand as of December 31, 2024, compared to $20,227,702 thousand as of September 30, 2024[36] Income and Expenses - Net interest income for Q4 2024 was $158.8 million, up $2.0 million, or 1.3%, from $156.7 million in Q3 2024[6] - Noninterest income decreased by $23.9 million to $29.4 million in Q4 2024, primarily due to a $26.2 million loss on the sale of investment securities[10] - Noninterest expense was $124.1 million in Q4 2024, a decrease of $2.0 million from the prior quarter[11] - Total interest income for Q4 2024 was $240,162,000, a decrease of 3.3% from $249,996,000 in Q3 2024[25] Credit Quality - A negative provision for credit losses of $0.8 million was recorded in Q4 2024, compared to a $7.4 million provision in Q3 2024[7] - The allowance for credit losses was $160,393,000 as of December 31, 2024, down from $163,700,000 as of September 30, 2024[26] - Non-performing assets totaled $20,679 thousand as of December 31, 2024, an increase from $17,834 thousand as of September 30, 2024[37] - The ratio of net loans and leases charged-off to average loans and leases outstanding was 0.09% for the three months ended December 31, 2024, down from 0.11% in the previous quarter[38] Capital and Dividends - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on February 28, 2025[2] - The Common Equity Tier 1 Capital Ratio was 12.80% as of December 31, 2024, down from 12.39% as of December 31, 2023[24] - The average tangible stockholders' equity for Q4 2024 was $1,634,108 thousand, up from $1,593,314 thousand in Q3 2024, reflecting an increase of approximately 2.6%[42] Operational Efficiency - The efficiency ratio for Q4 2024 was 65.51%, an increase from 59.48% in Q4 2023, indicating a decline in operational efficiency[23] - Average total assets decreased to $23,795,735 thousand in Q4 2024 from $24,046,696 thousand in Q3 2024, a reduction of approximately 1.0%[42]