First Hawaiian(US:FHB)2025-05-05 20:02Financial 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]