First Hawaiian, Inc. Reports Fourth Quarter 2024 Financial Results and Declares Dividend

Core Insights - First Hawaiian, Inc. reported strong financial results for Q4 2024, with growth in loan and deposit balances, an expanded net interest margin, controlled expenses, and excellent credit quality [2][12]. Financial Performance - Total assets reached $23.8 billion as of December 31, 2024, unchanged from the previous quarter [5]. - Gross loans and leases increased by $166.9 million, or 1.2%, to $14.4 billion [5]. - Total deposits rose by $94.5 million, or 0.5%, to $20.3 billion [5]. - Net interest income for Q4 2024 was $158.8 million, up $2.0 million, or 1.3%, from the prior quarter [6]. - The net interest margin improved to 3.03%, an increase of 8 basis points from 2.95% in the previous quarter [6]. Credit Quality - The company recorded a negative provision for credit losses of $0.8 million in Q4 2024, compared to a provision of $7.4 million in the prior quarter [7][12]. - The allowance for credit losses was $160.4 million, or 1.11% of total loans and leases, down from 1.15% in the previous quarter [11]. Noninterest Income and Expenses - Noninterest income decreased to $29.4 million in Q4 2024, down $23.9 million from $53.3 million in the prior quarter, primarily due to a $26.2 million loss on the sale of investment securities [8][12]. - Noninterest expense was $124.1 million, a decrease of $2.0 million from $126.1 million in the prior quarter [9]. Capital Management - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on February 28, 2025 [2]. - A stock repurchase program was adopted for up to $100 million of outstanding common stock during 2025 [3][16]. - The company repurchased 1.5 million shares at a total cost of $40 million in Q4 2024, with an average cost of $27.14 per share [15]. Efficiency and Ratios - The efficiency ratio for Q4 2024 was 65.5%, compared to 59.8% in the prior quarter [9]. - The effective tax rate was 18.9%, down from 19.6% in the previous quarter [10]. - Return on average total assets was 0.88%, while return on average tangible stockholders' equity was 12.78% [24].