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

HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2024. “I’m pleased to report that we finished 2024 with a very strong quarter that was highlighted by good performance across our key earnings drivers. Our loan and deposit balances grew, net interest margin expanded, expenses were well controlled and credit quality remained excellent. We also maintained our commitment to supporting our communities with a $1 million contribution to the First Hawaiian Foundation,” said Bob Harrison, Chairman, President, and CEO. “During the fourth quarter we took action to strengthen our balance sheet and increase our future earnings power by restructuring a portion of our investment portfolio. This action, along with the positive trends we saw in the fourth quarter, positions us very well entering 2025.” On January 29, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on February 28, 2025, to stockholders of record at the close of business on February 14, 2025. Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $100.0 million of its outstanding common stock during 2025. Fourth Quarter 2024 Highlights: Restructured a portion of the investment portfolio by selling $290.4 million of low-yielding investment securities and reinvested the sale proceeds into $291.5 million of higher-yielding securities. Recognized a $26.2 million pre-tax ($19.2 million after-tax) loss on the sale of securities.Net income of $52.5 million, or $0.41 per diluted shareTotal loans and leases increased $166.9 million versus prior quarterTotal deposits increased $94.5 million versus prior quarterNet interest margin increased 8 basis points to 3.03%Recorded a $0.8 million negative provision for credit lossesBoard of Directors declared a quarterly dividend of $0.26 per share Balance Sheet Total assets were $23.8 billion at December 31, 2024 and September 30, 2024. Gross loans and leases were $14.4 billion as of December 31, 2024, an increase of $166.9 million, or 1.2%, from $14.2 billion as of September 30, 2024. Total deposits were $20.3 billion as of December 31, 2024, an increase of $94.5 million, or 0.5%, from $20.2 billion as of September 30, 2024. Net Interest Income Net interest income for the fourth quarter of 2024 was $158.8 million, an increase of $2.0 million, or 1.3%, compared to $156.7 million for the prior quarter. The net interest margin was 3.03% in the fourth quarter of 2024, an increase of 8 basis points compared to 2.95% in the prior quarter. Provision Expense During the quarter ended December 31, 2024, we recorded a $0.8 million negative provision for credit losses. In the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses. Noninterest Income Noninterest income was $29.4 million in the fourth quarter of 2024, a decrease of $23.9 million compared to noninterest income of $53.3 million in the prior quarter. Noninterest income in the fourth quarter of 2024 included a $26.2 million loss on the sale of investment securities. Noninterest Expense Noninterest expense was $124.1 million in the fourth quarter of 2024, a decrease of $2.0 million compared to noninterest expense of $126.1 million in the prior quarter. The efficiency ratio was 65.5% and 59.8% for the quarters ended December 31, 2024 and September 30, 2024, respectively. Taxes The effective tax rate was 18.9% and 19.6% for the quarters ended December 31, 2024 and September 30, 2024, respectively. Asset Quality The allowance for credit losses was $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024, compared to $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024. The reserve for unfunded commitments was $32.8 million as of December 31, 2024, compared to $33.7 million as of September 30, 2024. Net charge-offs were $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024, compared to net charge-offs of $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024. Total non-performing assets were $20.7 million, or 0.14% of total loans and leases and other real estate owned, on December 31, 2024, compared to total non-performing assets of $17.8 million, or 0.13% of total loans and leases and other real estate owned, on September 30, 2024. Capital Total stockholders' equity was $2.6 billion on December 31, 2024 and September 30, 2024. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 12.80% and 13.99%, respectively, on December 31, 2024, compared with 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024. The Company repurchased 1.5 million shares of common stock at a total cost of $40.0 million under the stock repurchase program in the fourth quarter. The average cost was $27.14 per share repurchased. Total repurchases in 2024 were $40.0 million. As to the stock repurchase program approved for 2025, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason. First Hawaiian, Inc. First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 8:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register.vevent.com/register/BI80003c73e95b445aa5fe62db794097bb, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Financial Highlights Table 1 For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Operating Results: Net interest income $ 158,753 $156,707 $151,793 $ 622,738 $636,127 (Benefit) provision for credit losses (750) 7,400 5,330 14,750 26,630 Noninterest income 29,376 53,288 58,347 185,803 200,815 Noninterest expense 124,143 126,147 142,307 501,189 501,138 Net income 52,496 61,492 47,502 230,129 234,983 Basic earnings per share 0.41 0.48 0.37 1.80 1.84 Diluted earnings per share 0.41 0.48 0.37 1.79 1.84 Dividends declared per share 0.26 0.26 0.26 1.04 1.04 Dividend payout ratio 63.41% 54.17% 70.27% 58.10% 56.52%Performance Ratios(1): Net interest margin 3.03% 2.95% 2.81% 2.95% 2.92%Efficiency ratio 65.51% 59.77% 67.28% 61.57% 59.48%Return on average total assets 0.88% 1.02% 0.77% 0.96% 0.95%Return on average tangible assets (non-GAAP)(2) 0.92% 1.06% 0.81% 1.00% 0.99%Return on average total stockholders' equity 7.94% 9.45% 7.94% 9.00% 10.01%Return on average tangible stockholders' equity (non-GAAP)(2) 12.78% 15.35% 13.66% 14.74% 17.39%Average Balances: Average loans and leases $ 14,276,107 $14,304,806 $14,349,322 $ 14,312,759 $14,266,291 Average earning assets 21,079,951 21,328,882 21,688,816 21,284,169 21,952,009 Average assets 23,795,735 24,046,696 24,404,727 23,996,723 24,625,445 Average deposits 20,249,573 20,367,805 20,908,221 20,373,975 21,160,155 Average stockholders' equity 2,629,600 2,588,806 2,374,669 2,557,215 2,346,713 Market Value Per Share: Closing 25.95 23.15 22.86 25.95 22.86 High 28.80 26.18 23.22 28.80 28.28 Low 22.08 20.28 17.18 19.48 15.08 As of As of As of December 31, September 30, December 31, (dollars in thousands, except per share data) 2024 2024 2023 Balance Sheet Data: Loans and leases $ 14,408,258 $14,241,370 $14,353,497 Total assets 23,828,186 23,780,285 24,926,474 Total deposits 20,322,216 20,227,702 21,332,657 Short-term borrowings 250,000 250,000 500,000 Total stockholders' equity 2,617,486 2,648,034 2,486,066 Per Share of Common Stock: Book value $ 20.70 $20.71 $19.48 Tangible book value (non-GAAP)(2) 12.83 12.92 11.68 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.14% 0.13% 0.13%Allowance for credit losses for loans and leases / total loans and leases 1.11% 1.15% 1.09% Capital Ratios: Common Equity Tier 1 Capital Ratio 12.80% 13.03% 12.39%Tier 1 Capital Ratio 12.80% 13.03% 12.39%Total Capital Ratio 13.99% 14.25% 13.57%Tier 1 Leverage Ratio 9.14% 9.14% 8.64%Total stockholders' equity to total assets 10.98% 11.14% 9.97%Tangible stockholders' equity to tangible assets (non-GAAP)(2) 7.10% 7.25% 6.23% Non-Financial Data: Number of branches 48 48 50 Number of ATMs 273 273 275 Number of Full-Time Equivalent Employees 1,997 2,022 2,089 (1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, (dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023Interest income Loans and lease financing $ 198,347 $205,682 $196,276 $ 805,941 $748,053 Available-for-sale investment securities 12,767 12,850 19,033 54,306 74,241 Held-to-maturity investment securities 17,071 16,937 17,987 69,376 73,497 Other 11,977 14,527 7,734 50,421 27,788 Total interest income 240,162 249,996 241,030 980,044 923,579 Interest expense Deposits 78,465 87,500 82,215 335,717 258,221 Short-term and long-term borrowings 2,685 5,397 6,232 19,988 26,289 Other 259 392 790 1,601 2,942 Total interest expense 81,409 93,289 89,237 357,306 287,452 Net interest income 158,753 156,707 151,793 622,738 636,127 (Benefit) provision for credit losses (750) 7,400 5,330 14,750 26,630 Net interest income after (benefit) provision for credit losses 159,503 149,307 146,463 607,988 609,497 Noninterest income Service charges on deposit accounts 7,968 7,783 7,646 31,090 29,647 Credit and debit card fees 14,834 17,533 16,381 64,401 63,888 Other service charges and fees 13,132 11,790 9,535 45,862 37,299 Trust and investment services income 9,449 9,077 9,645 38,306 38,449 Bank-owned life insurance 5,713 4,502 5,063 17,861 15,326 Investment securities (losses) gains, net (26,171) — 792 (26,171) 792 Other 4,451 2,603 9,285 14,454 15,414 Total noninterest income 29,376 53,288 58,347 185,803 200,815 Noninterest expense Salaries and employee benefits 59,003 59,563 55,882 235,565 225,755 Contracted services and professional fees 14,472 14,634 16,219 60,912 66,423 Occupancy 7,708 6,945 7,561 28,971 29,608 Equipment 14,215 13,078 12,547 53,902 45,109 Regulatory assessment and fees 3,745 3,412 20,412 19,091 32,073 Advertising and marketing 1,529 1,813 1,441 7,719 7,615 Card rewards program 7,926 8,678 7,503 33,831 31,627 Other 15,545 18,024 20,742 61,198 62,928 Total noninterest expense 124,143 126,147 142,307 501,189 501,138 Income before provision for income taxes 64,736 76,448 62,503 292,602 309,174 Provision for income taxes 12,240 14,956 15,001 62,473 74,191 Net income $ 52,496 $61,492 $47,502 $ 230,129 $234,983 Basic earnings per share $ 0.41 $0.48 $0.37 $ 1.80 $1.84 Diluted earnings per share $ 0.41 $0.48 $0.37 $ 1.79 $1.84 Basic weighted-average outstanding shares 127,350,626 127,886,167 127,612,734 127,702,573 127,567,547 Diluted weighted-average outstanding shares 128,167,502 128,504,035 128,028,964 128,325,865 127,915,873 Consolidated Balance Sheets Table 3 December 31, September 30, December 31, (dollars in thousands, except share amount) 2024 2024 2023 Assets Cash and due from banks $ 258,057 $252,209 $185,015 Interest-bearing deposits in other banks 912,133 820,603 1,554,882 Investment securities: Available-for-sale, at fair value (amortized cost: $2,190,448 as of December 31, 2024, $2,290,781 as of September 30, 2024 and $2,558,675 as of December 31, 2023) 1,926,516 2,055,959 2,255,336 Held-to-maturity, at amortized cost (fair value: $3,262,509 as of December 31, 2024, $3,475,143 as of September 30, 2024 and $3,574,856 as of December 31, 2023) 3,790,650 3,853,697 4,041,449 Loans held for sale — — 190 Loans and leases 14,408,258 14,241,370 14,353,497 Less: allowance for credit losses 160,393 163,700 156,533 Net loans and leases 14,247,865 14,077,670 14,196,964 Premises and equipment, net 288,530 287,036 281,461 Accrued interest receivable 79,979 81,875 84,417 Bank-owned life insurance 491,890 490,135 479,907 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 5,078 5,236 5,699 Other assets 831,996 860,373 845,662 Total assets $ 23,828,186 $23,780,285 $24,926,474 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,347,068 $13,427,674 $13,749,095 Noninterest-bearing 6,975,148 6,800,028 7,583,562 Total deposits 20,322,216 20,227,702 21,332,657 Short-term borrowings 250,000 250,000 500,000 Retirement benefits payable 97,135 100,448 103,285 Other liabilities 541,349 554,101 504,466 Total liabilities 21,210,700 21,132,251 22,440,408 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024, issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024 and issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023) 1,417 1,417 1,413 Additional paid-in capital 2,560,380 2,558,158 2,548,250 Retained earnings 934,048 915,062 837,859 Accumulated other comprehensive loss, net (463,994) (452,658) (530,210)Treasury stock (15,325,949 shares as of December 31, 2024, 13,849,434 shares as of September 30, 2024 and 13,721,778 shares as of December 31, 2023) (414,365) (373,945) (371,246)Total stockholders' equity 2,617,486 2,648,034 2,486,066 Total liabilities and stockholders' equity $ 23,828,186 $23,780,285 $24,926,474 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 948.9 $ 11.3 4.75%$1,020.4 $13.9 5.40%$568.0 $7.8 5.39%Available-for-Sale Investment Securities Taxable 1,987.7 12.7 2.56 2,062.6 12.8 2.48 2,598.4 19.0 2.92 Non-Taxable 1.4 — 5.30 1.5 — 5.06 1.9 — 5.12 Held-to-Maturity Investment Securities Taxable 3,224.8 13.9 1.72 3,288.2 13.8 1.67 3,472.1 14.8 1.70 Non-Taxable 601.7 3.9 2.56 602.3 3.7 2.46 603.9 3.9 2.58 Total Investment Securities 5,815.6 30.5 2.10 5,954.6 30.3 2.03 6,676.3 37.7 2.25 Loans Held for Sale 1.3 — 5.75 2.2 — 5.64 0.7 — 7.41 Loans and Leases(1) Commercial and industrial 2,157.8 35.2 6.50 2,165.3 38.0 6.98 2,148.1 36.7 6.78 Commercial real estate 4,333.1 68.9 6.33 4,278.3 71.6 6.67 4,356.3 71.4 6.51 Construction 990.7 17.4 6.99 1,040.7 20.3 7.74 888.7 16.7 7.45 Residential: Residential mortgage 4,183.5 40.8 3.90 4,204.5 40.4 3.84 4,294.8 38.8 3.61 Home equity line 1,157.1 13.3 4.55 1,158.5 13.2 4.52 1,174.8 11.3 3.83 Consumer 1,033.2 19.0 7.29 1,035.3 18.7 7.19 1,132.4 18.4 6.43 Lease financing 420.7 4.4 4.18 422.2 4.0 3.72 354.2 3.6 4.03 Total Loans and Leases 14,276.1 199.0 5.55 14,304.8 206.2 5.74 14,349.3 196.9 5.45 Other Earning Assets 38.1 0.7 6.73 46.9 0.7 5.83 94.5 — 0.06 Total Earning Assets(2) 21,080.0 241.5 4.56 21,328.9 251.1 4.69 21,688.8 242.4 4.44 Cash and Due from Banks 226.2 242.3 240.8 Other Assets 2,489.5 2,475.5 2,475.1 Total Assets $ 23,795.7 $24,046.7 $24,404.7 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 5,940.3 $ 21.1 1.42%$5,963.1 $23.6 1.57%$6,067.2 $22.4 1.46%Money Market 4,053.6 26.6 2.61 4,179.5 31.9 3.04 3,905.0 27.5 2.79 Time 3,362.0 30.8 3.64 3,327.3 32.0 3.83 3,390.7 32.3 3.78 Total Interest-Bearing Deposits 13,355.9 78.5 2.34 13,469.9 87.5 2.58 13,362.9 82.2 2.44 Other Short-Term Borrowings 250.0 2.7 4.27 451.1 5.4 4.76 515.2 6.2 4.80 Other Interest-Bearing Liabilities 25.3 0.2 4.07 22.4 0.4 6.97 42.1 0.8 7.44 Total Interest-Bearing Liabilities 13,631.2 81.4 2.38 13,943.4 93.3 2.66 13,920.2 89.2 2.54 Net Interest Income $ 160.1 $157.8 $153.2 Interest Rate Spread(3) 2.18% 2.03% 1.90%Net Interest Margin(4) 3.03% 2.95% 2.81%Noninterest-Bearing Demand Deposits 6,893.7 6,897.9 7,545.3 Other Liabilities 641.2 616.6 564.5 Stockholders' Equity 2,629.6 2,588.8 2,374.7 Total Liabilities and Stockholders' Equity $ 23,795.7 $24,046.7 $24,404.7 (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.4 million, $1.1 million and $1.4 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Average Balances and Interest Rates Table 5 Year Ended Year Ended December 31, 2024 December 31, 2023 Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 900.8 $ 47.3 5.25%$512.3 $26.5 5.18%Available-for-Sale Investment Securities Taxable 2,090.0 54.2 2.60 2,871.8 73.8 2.57 Non-Taxable 1.5 0.1 5.45 10.2 0.6 5.55 Held-to-Maturity Investment Securities Taxable 3,321.6 56.6 1.70 3,579.0 60.7 1.70 Non-Taxable 602.6 15.6 2.58 607.7 15.9 2.61 Total Investment Securities 6,015.7 126.5 2.10 7,068.7 151.0 2.14 Loans Held for Sale 1.3 0.1 6.02 0.4 — 6.63 Loans and Leases(1) Commercial and industrial 2,172.4 148.6 6.84 2,182.3 141.0 6.46 Commercial real estate 4,310.1 282.3 6.55 4,257.9 266.0 6.25 Construction 985.4 73.5 7.46 877.7 62.1 7.08 Residential: Residential mortgage 4,220.2 163.4 3.87 4,308.0 156.4 3.63 Home equity line 1,162.9 51.0 4.39 1,131.1 39.3 3.47 Consumer 1,051.5 73.4 6.98 1,178.6 71.5 6.07 Lease financing 410.3 16.3 3.98 330.7 14.1 4.26 Total Loans and Leases 14,312.8 808.5 5.65 14,266.3 750.4 5.26 Other Earning Assets 53.6 3.1 5.88 104.3 1.3 1.20 Total Earning Assets(2) 21,284.2 985.5 4.63 21,952.0 929.2 4.23 Cash and Due from Banks 238.3 265.1 Other Assets 2,474.2 2,408.3 Total Assets $ 23,996.7 $24,625.4 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 5,990.7 $ 91.6 1.53%$6,124.7 $71.5 1.17%Money Market 4,064.0 117.8 2.90 3,869.1 86.1 2.22 Time 3,324.8 126.3 3.80 3,040.0 100.6 3.31 Total Interest-Bearing Deposits 13,379.5 335.7 2.51 13,033.8 258.2 1.98 Federal Funds Purchased — — — 17.2 0.8 4.45 Other Short-Term Borrowings 424.9 20.0 4.70 261.9 13.0 4.98 Long-Term Borrowings — — — 261.6 12.5 4.78 Other Interest-Bearing Liabilities 29.6 1.6 5.39 57.1 3.0 5.15 Total Interest-Bearing Liabilities 13,834.0 357.3 2.58 13,631.6 287.5 2.11 Net Interest Income $ 628.2 $641.7 Interest Rate Spread(3) 2.05% 2.12%Net Interest Margin(4) 2.95% 2.92%Noninterest-Bearing Demand Deposits 6,994.5 8,126.4 Other Liabilities 611.0 520.7 Stockholders' Equity 2,557.2 2,346.7 Total Liabilities and Stockholders' Equity $ 23,996.7 $24,625.4 (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $5.4 million and $5.6 million for the years ended December 31, 2024 and 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the years ended December 31, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 6 Three Months Ended December 31, 2024 Compared to September 30, 2024(dollars in millions) Volume Rate Total (1)Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (1.0) $ (1.6) $ (2.6)Available-for-Sale Investment Securities Taxable (0.5) 0.4 (0.1)Held-to-Maturity Investment Securities Taxable (0.3) 0.4 0.1 Non-Taxable — 0.2 0.2 Total Investment Securities (0.8) 1.0 0.2 Loans and Leases Commercial and industrial (0.1) (2.7) (2.8)Commercial real estate 0.9 (3.6) (2.7)Construction (1.0) (1.9) (2.9)Residential: Residential mortgage (0.2) 0.6 0.4 Home equity line — 0.1 0.1 Consumer — 0.3 0.3 Lease financing — 0.4 0.4 Total Loans and Leases (0.4) (6.8) (7.2)Other Earning Assets (0.1) 0.1 — Total Change in Interest Income (2.3) (7.3) (9.6) Change in Interest Expense: Interest-Bearing Deposits Savings (0.1) (2.4) (2.5)Money Market (0.9) (4.4) (5.3)Time 0.3 (1.5) (1.2)Total Interest-Bearing Deposits (0.7) (8.3) (9.0)Other Short-Term Borrowings (2.2) (0.5) (2.7)Other Interest-Bearing Liabilities — (0.2) (0.2)Total Change in Interest Expense (2.9) (9.0) (11.9)Change in Net Interest Income $ 0.6 $ 1.7 $ 2.3 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 7 Three Months Ended December 31, 2024 Compared to December 31, 2023(dollars in millions) Volume Rate Total (1)Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 4.6 $ (1.1) $ 3.5 Available-for-Sale Investment Securities Taxable (4.1) (2.2) (6.3)Held-to-Maturity Investment Securities Taxable (1.1) 0.2 (0.9)Total Investment Securities (5.2) (2.0) (7.2)Loans and Leases Commercial and industrial 0.1 (1.6) (1.5)Commercial real estate (0.4) (2.1) (2.5)Construction 1.8 (1.1) 0.7 Residential: Residential mortgage (1.0) 3.0 2.0 Home equity line (0.1) 2.1 2.0 Consumer (1.7) 2.3 0.6 Lease financing 0.7 0.1 0.8 Total Loans and Leases (0.6) 2.7 2.1 Other Earning Assets — 0.7 0.7 Total Change in Interest Income (1.2) 0.3 (0.9) Change in Interest Expense: Interest-Bearing Deposits Savings (0.6) (0.7) (1.3)Money Market 1.0 (1.9) (0.9)Time (0.2) (1.3) (1.5)Total Interest-Bearing Deposits 0.2 (3.9) (3.7)Other Short-Term Borrowings (2.9) (0.6) (3.5)Other Interest-Bearing Liabilities (0.3) (0.3) (0.6)Total Change in Interest Expense (3.0) (4.8) (7.8)Change in Net Interest Income $ 1.8 $ 5.1 $ 6.9 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 8 Year Ended December 31, 2024 Compared to December 31, 2023(dollars in millions) Volume Rate Total (1)Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 20.4 $ 0.4 $ 20.8 Available-for-Sale Investment Securities Taxable (20.4) 0.8 (19.6)Non-Taxable (0.5) — (0.5)Held-to-Maturity Investment Securities Taxable (4.1) — (4.1)Non-Taxable (0.1) (0.2) (0.3)Total Investment Securities (25.1) 0.6 (24.5)Loans Held for Sale 0.1 — 0.1 Loans and Leases Commercial and industrial (0.7) 8.3 7.6 Commercial real estate 3.3 13.0 16.3 Construction 7.9 3.5 11.4 Residential: Residential mortgage (3.2) 10.2 7.0 Home equity line 1.1 10.6 11.7 Consumer (8.2) 10.1 1.9 Lease financing 3.2 (1.0) 2.2 Total Loans and Leases 3.4 54.7 58.1 Other Earning Assets (0.9) 2.7 1.8 Total Change in Interest Income (2.1) 58.4 56.3 Change in Interest Expense: Interest-Bearing Deposits Savings (1.6) 21.7 20.1 Money Market 4.5 27.2 31.7 Time 10.0 15.7 25.7 Total Interest-Bearing Deposits 12.9 64.6 77.5 Federal Funds Purchased (0.4) (0.4) (0.8)Other Short-Term Borrowings 7.7 (0.7) 7.0 Long-Term Borrowings (6.3) (6.2) (12.5)Other Interest-Bearing Liabilities (1.5) 0.1 (1.4)Total Change in Interest Expense 12.4 57.4 69.8 Change in Net Interest Income $ (14.5) $ 1.0 $ (13.5) (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Loans and Leases Table 9 December 31, September 30, December 31, (dollars in thousands) 2024 2024 2023Commercial and industrial $ 2,247,428 $2,110,077 $2,165,349 Commercial real estate 4,463,992 4,265,289 4,340,243 Construction 918,326 1,056,249 900,292 Residential: Residential mortgage 4,168,154 4,187,060 4,283,315 Home equity line 1,151,739 1,159,823 1,174,588 Total residential 5,319,893 5,346,883 5,457,903 Consumer 1,023,969 1,030,044 1,109,901 Lease financing 434,650 432,828 379,809 Total loans and leases $ 14,408,258 $14,241,370 $14,353,497 Deposits Table 10 December 31, September 30, December 31, (dollars in thousands) 2024 2024 2023Demand $ 6,975,148 $6,800,028 $7,583,562 Savings 6,021,364 5,896,029 6,445,084 Money Market 4,027,334 4,129,381 3,847,853 Time 3,298,370 3,402,264 3,456,158 Total Deposits $ 20,322,216 $20,227,702 $21,332,657 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11 December 31, September 30, December 31, (dollars in thousands) 2024 2024 2023Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 329 $934 $970 Commercial real estate 411 152 2,953 Total Commercial Loans 740 1,086 3,923 Residential Loans: Residential mortgage 12,768 9,103 7,620 Home equity line 7,171 7,645 7,052 Total Residential Loans 19,939 16,748 14,672 Total Non-Accrual Loans and Leases 20,679 17,834 18,595 Total Non-Performing Assets $ 20,679 $17,834 $18,595 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 1,432 $529 $494 Commercial real estate — 568 300 Construction 536 — — Total Commercial Loans 1,968 1,097 794 Residential mortgage 1,317 931 — Consumer 2,734 2,515 2,702 Total Accruing Loans and Leases Past Due 90 Days or More $ 6,019 $4,543 $3,496 Total Loans and Leases $ 14,408,258 $14,241,370 $14,353,497 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12 For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023Balance at Beginning of Period $ 197,397 $193,930 $192,570 $ 192,138 $177,735 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (851) (1,178) (910) (3,615) (3,482)Commercial real estate — (400) (2,500) (400) (2,500)Total Commercial Loans (851) (1,578) (3,410) (4,015) (5,982)Residential Loans: Residential mortgage — — — — (122)Home equity line — — (20) — (292)Total Residential Loans — — (20) — (414)Consumer (4,774) (4,192) (4,147) (18,002) (17,110)Total Loans and Leases Charged-Off (5,625) (5,770) (7,577) (22,017) (23,506)Recoveries on Loans and Leases Previously Charged-Off Commercial and industrial 298 160 171 919 3,346 Residential Loans: Residential mortgage 30 31 31 119 141 Home equity line 32 86 163 274 702 Total Residential Loans 62 117 194 393 843 Consumer 1,858 1,560 1,450 7,057 7,090 Total Recoveries on Loans and Leases Previously Charged-Off 2,218 1,837 1,815 8,369 11,279 Net Loans and Leases Charged-Off (3,407) (3,933) (5,762) (13,648) (12,227)(Benefit) Provision for Credit Losses (750) 7,400 5,330 14,750 26,630 Balance at End of Period $ 193,240 $197,397 $192,138 $ 193,240 $192,138 Components: Allowance for Credit Losses $ 160,393 $163,700 $156,533 $ 160,393 $156,533 Reserve for Unfunded Commitments 32,847 33,697 35,605 32,847 35,605 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 193,240 $197,397 $192,138 $ 193,240 $192,138 Average Loans and Leases Outstanding $ 14,276,107 $14,304,806 $14,349,322 $ 14,312,759 $14,266,291 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.09% 0.11% 0.16% 0.10% 0.09%Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.11% 1.15% 1.09% 1.11% 1.09%Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 7.76x 9.18x 8.42x 7.76x 8.42x (1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023. Loans and Leases by Year of Origination and Credit Quality Indicator Table 13 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalCommercial Lending Commercial and Industrial Risk rating: Pass $ 163,980 $ 73,554 $ 185,433 $ 249,532 $ 17,775 $ 256,119 $ 1,118,075 $ 14,336 $ 2,078,804Special Mention 808 2,385 1,209 68 300 1,322 41,520 — 47,612Substandard — — 8,096 196 309 1,114 26,089 — 35,804Other (1) 17,132 8,928 6,937 2,797 765 1,279 47,370 — 85,208Total Commercial and Industrial 181,920 84,867 201,675 252,593 19,149 259,834 1,233,054 14,336 2,247,428Current period gross charge-offs — 578 335 105 221 2,376 — — 3,615 Commercial Real Estate Risk rating: Pass 322,405 369,948 832,005 634,722 308,156 1,720,243 116,682 7,703 4,311,864Special Mention 9,014 2,252 7,510 41,399 3,265 10,860 11,861 — 86,161Substandard — — 54,952 1,002 — 9,732 148 — 65,834Other (1) — — — — — 133 — — 133Total Commercial Real Estate 331,419 372,200 894,467 677,123 311,421 1,740,968 128,691 7,703 4,463,992Current period gross charge-offs — — — — — 400 — — 400 Construction Risk rating: Pass 91,583 198,382 332,000 186,682 41,596 13,824 14,972 — 879,039Special Mention — — — — — 155 — — 155Other (1) 12,482 9,688 10,861 1,561 1,199 2,644 697 — 39,132Total Construction 104,065 208,070 342,861 188,243 42,795 16,623 15,669 — 918,326Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 149,615 101,684 60,898 14,328 17,703 84,663 — — 428,891Special Mention — — — 220 — — — — 220Substandard 4,657 565 317 — — — — — 5,539Total Lease Financing 154,272 102,249 61,215 14,548 17,703 84,663 — — 434,650Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 771,676 $ 767,386 $ 1,500,218 $ 1,132,507 $ 391,068 $ 2,102,088 $ 1,377,414 $ 22,039 $ 8,064,396Current period gross charge-offs $ — $ 578 $ 335 $ 105 $ 221 $ 2,776 $ — $ — $ 4,015 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis TotalResidential Lending Residential Mortgage FICO: 740 and greater $ 168,067 $ 187,710 $ 492,845 $ 946,390 $ 498,443 $ 1,115,557 $ — $ — $ 3,409,012680 - 739 18,368 34,901 65,735 103,622 57,369 138,469 — — 418,464620 - 679 1,726 4,380 23,556 19,355 14,058 40,471 — — 103,546550 - 619 — 820 6,526 7,745 4,042 13,783 — — 32,916Less than 550 — 734 775 2,264 1,559 6,342 — — 11,674No Score (3) 13,211 6,719 16,839 9,916 5,518 45,604 — — 97,807Other (2) 9,456 12,404 16,564 14,311 10,769 28,812 2,419 — 94,735Total Residential Mortgage 210,828 247,668 622,840 1,103,603 591,758 1,389,038 2,419 — 4,168,154Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 925,749 1,652 927,401680 - 739 — — — — — — 161,523 1,030 162,553620 - 679 — — — — — — 39,235 1,220 40,455550 - 619 — — — — — — 13,006 416 13,422Less than 550 — — — — — — 5,993 563 6,556No Score (3) — — — — — — 1,352 — 1,352Total Home Equity Line — — — — — — 1,146,858 4,881 1,151,739Current period gross charge-offs — — — — — — — — — Total Residential Lending $ 210,828 $ 247,668 $ 622,840 $ 1,103,603 $ 591,758 $ 1,389,038 $ 1,149,277 $ 4,881 $ 5,319,893Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Lending FICO: 740 and greater 92,329 65,738 84,007 44,192 14,607 6,897 101,938 106 409,814680 - 739 68,371 46,533 44,504 21,829 7,652 5,278 86,935 509 281,611620 - 679 30,618 17,728 19,942 10,252 4,195 4,152 50,544 775 138,206550 - 619 6,108 6,768 9,312 5,702 2,574 3,106 15,641 778 49,989Less than 550 2,012 3,950 5,572 3,594 1,591 1,830 5,311 593 24,453No Score (3) 1,881 106 38 — 7 9 38,932 176 41,149Other (2) — — 277 887 99 956 76,528 — 78,747Total Consumer Lending $ 201,319 $ 140,823 $ 163,652 $ 86,456 $ 30,725 $ 22,228 $ 375,829 $ 2,937 $ 1,023,969Current period gross charge-offs $ 732 $ 2,055 $ 2,606 $ 1,388 $ 676 $ 2,685 $ 7,168 $ 692 $ 18,002 Total Loans and Leases $ 1,183,823 $ 1,155,877 $ 2,286,710 $ 2,322,566 $ 1,013,551 $ 3,513,354 $ 2,902,520 $ 29,857 $ 14,408,258Current period gross charge-offs $ 732 $ 2,633 $ 2,941 $ 1,493 $ 897 $ 5,461 $ 7,168 $ 692 $ 22,017 (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of December 31, 2024, the majority of the loans in this population were current. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of December 31, 2024, the majority of the loans in this population were current. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 14 For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, (dollars in thousands) 2024 2024 2023 2024 2023 Income Statement Data: Net income $ 52,496 $61,492 $47,502 $ 230,129 $234,983 Average total stockholders' equity $ 2,629,600 $2,588,806 $2,374,669 $ 2,557,215 $2,346,713 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,634,108 $1,593,314 $1,379,177 $ 1,561,723 $1,351,221 Average total assets $ 23,795,735 $24,046,696 $24,404,727 $ 23,996,723 $24,625,445 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,800,243 $23,051,204 $23,409,235 $ 23,001,231 $23,629,953 Return on average total stockholders' equity(1) 7.94% 9.45% 7.94% 9.00% 10.01%Return on average tangible stockholders' equity (non-GAAP)(1) 12.78% 15.35% 13.66% 14.74% 17.39% Return on average total assets(1) 0.88% 1.02% 0.77% 0.96% 0.95%Return on average tangible assets (non-GAAP)(1) 0.92% 1.06% 0.81% 1.00% 0.99% As of As of As of December 31, September 30, December 31, (dollars in thousands, except per share amounts) 2024 2024 2023 Balance Sheet Data: Total stockholders' equity $ 2,617,486 $2,648,034 $2,486,066 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,621,994 $1,652,542 $1,490,574 Total assets $ 23,828,186 $23,780,285 $24,926,474 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 22,832,694 $22,784,793 $23,930,982 Shares outstanding 126,422,898 127,886,167 127,618,761 Total stockholders' equity to total assets 10.98% 11.14% 9.97%Tangible stockholders' equity to tangible assets (non-GAAP) 7.10% 7.25% 6.23% Book value per share $ 20.70 $20.71 $19.48 Tangible book value per share (non-GAAP) $ 12.83 $12.92 $11.68 (1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.

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

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