Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14585 FIRST HAWAIIAN, INC. (Exact Name of Registrant as Specified in its Charter) Not Applicable (Former name, former add ...

Financial Data and Key Metrics Changes - Net interest income increased to $160.5 million, up $1.8 million from the prior quarter, driven by lower deposit costs and investment portfolio restructuring [12][7] - Total loans declined by $115 million or 0.8% from the prior quarter, primarily due to commercial real estate loans [9] - Total deposits slightly declined, with retail deposits increasing by $105 million while commercial deposits fell by $167 million [10] Business Line Data and Key Metrics Changes - Noninterest income was stable at $50.5 million, while noninterest expenses were $123.6 million, with no significant nonrecurring items [14] - The bank maintained strong credit performance, with classified assets decreasing by $3 million and year-to-date net charge-offs at $3.8 million [15][16] Market Data and Key Metrics Changes - The statewide unemployment rate remained stable at 3%, compared to the national rate of 4.1% [6] - Visitor arrivals increased by 1% and spending rose by 4.5% compared to 2024 levels, with Maui seeing the largest increases [6] Company Strategy and Development Direction - The company remains well-capitalized with ample liquidity and plans to continue supporting customers while managing expenses [8][7] - The management is focused on maintaining strong relationships with customers and is optimistic about loan growth despite market uncertainties [24][63] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty in the macroeconomic environment but remains optimistic about opportunities for growth [24][63] - The company is closely monitoring the impact of tariffs and economic conditions on its loan portfolios, particularly in the consumer and commercial sectors [68][70] Other Important Information - The bank repurchased approximately 974,000 shares at a total cost of $25 million, with $75 million remaining under the 2025 stock repurchase plan [8] - The allowance for credit losses increased to $166.6 million, reflecting a more pessimistic economic forecast [17] Q&A Session Summary Question: Insights on loan performance and economic pulse - Management indicated that average loans for the quarter were up over Q4, with a strong pipeline despite some uncertainty in the market [23][24] Question: Competitive landscape on deposit costs - Management expressed confidence in further reducing deposit costs as rates decline, but noted limited room for significant reductions beyond current levels [26][32] Question: Expense trajectory and investment plans - Management reiterated guidance for expenses and indicated a commitment to investing in the business while remaining cautious about the economic outlook [36][38] Question: Allowance for credit losses and consumer exposure - The increase in the allowance was driven by the economic forecasting model, with management noting stable performance in the consumer portfolio [42][94] Question: Impact of tariffs on loan portfolios - Management is closely monitoring the impact of tariffs on various loan portfolios, particularly in the C&I sector, but has not observed significant concerns yet [68][70] Question: Margin outlook and rate cuts - Management indicated that the ability to offset rate cuts will depend on loan growth, with potential for margins to remain stable if growth is strong [80][81]

First Hawaiian (FHB) reported $211 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 2.5%. EPS of $0.47 for the same period compares to $0.42 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $210.33 million, representing a surprise of +0.32%. The company delivered an EPS surprise of +2.17%, with the consensus EPS estimate being $0.46.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

First Hawaiian (FHB) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.17%. A quarter ago, it was expected that this bank holding company would post earnings of $0.40 per share when it actually produced earnings of $0.41, delivering a surprise of 2.50%.Over the last four quarters, the ...

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].

Core Insights - First Hawaiian (FHB) and Bank of Hawaii (BOH) are two stocks in the Banks - West sector, with FHB currently presenting a better value opportunity compared to BOH [1] Valuation Metrics - FHB has a forward P/E ratio of 11.49, while BOH has a forward P/E of 16.63, indicating that FHB is potentially undervalued [5] - The PEG ratio for FHB is 2.70, compared to BOH's PEG ratio of 5.02, suggesting that FHB has a more favorable earnings growth outlook relative to its valuation [5] - FHB's P/B ratio is 1.11, while BOH's P/B ratio is 1.95, further indicating that FHB is trading at a lower market value compared to its book value [6] Zacks Rank and Value Grades - FHB holds a Zacks Rank of 2 (Buy), while BOH has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for FHB [3] - FHB has a Value grade of B, whereas BOH has a Value grade of D, reinforcing the notion that FHB is the more attractive option for value investors [6]

HONOLULU, April 02, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB) announced today that it plans to release its first quarter 2025 financial results on Wednesday, April 23, 2025 before the market opens. First Hawaiian will host a conference call to discuss the company's results on the same day at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time). To access the call by phone, participants will need to click on the following registration link: https://register-conf.media-server.com/register/BI13d3259 ...

Employee and Diversity - As of December 31, 2024, the company had over 2,000 employees with an average tenure of 11.8 years[20] - The board of directors includes 40% women and 70% ethnically diverse individuals, with 62% of employees being women and 87% of the workforce being ethnically diverse[25] - The company recognizes the importance of employee engagement and development to meet evolving corporate and customer needs[21] - The company offers 12 leadership development programs and over 20,000 professional development courses through its Online Learning Center[23] Regulatory Environment - The company is subject to extensive regulation under federal and state banking laws, impacting its growth potential and financial performance[32] - The company must obtain prior approval from the Federal Reserve for acquisitions that would result in owning 5% or more of any class of voting shares of a bank[46] - The company controls more than 30% of the total deposits in the Hawaii market, limiting its ability to acquire additional banks in Hawaii[47] - The company is a Federal Deposit Insurance Corporation (FDIC) insured bank chartered under Hawaii law and is not a member of the Federal Reserve System[37] - FHI is required to maintain a capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios of 7% CET1 to risk-weighted assets[59] - FHI is subject to regulatory oversight by the Federal Reserve regarding its dividend policies and share repurchases[51] - The FDIA mandates that a bank must not pay dividends if it would cause the institution to become undercapitalized[64] - The Bank must maintain a minimum paid-in common stock and additional paid-in capital of $6.5 million to pay dividends under Hawaii law[50] - The FDIA prohibits an IDI from accepting brokered deposits unless it is well capitalized or adequately capitalized with a waiver from the FDIC[69] Financial Performance - Total noninterest income for the year ended December 31, 2024, was $185.8 million, a decrease of $15.0 million or 7% compared to 2023[295] - Service charges on deposit accounts increased to $31.1 million for the year ended December 31, 2024, up $1.4 million or 5% from 2023[296] - Credit and debit card fees reached $64.4 million for the year ended December 31, 2024, an increase of $0.5 million or 1% compared to 2023[297] - Other service charges and fees were $45.9 million for the year ended December 31, 2024, an increase of $8.6 million or 23% from 2023[298] - Trust and investment services income was $38.3 million for the year ended December 31, 2024, a slight decrease compared to 2023[299] - Total noninterest expense for the year ended December 31, 2024, was $501.2 million, an increase of $0.1 million compared to 2023, while it increased by $60.7 million or 14% compared to 2022[306] - Net income for the Retail Banking segment was $238.4 million for the year ended December 31, 2024, an increase of $55.4 million or 30% compared to 2023, primarily due to a $48.7 million increase in net interest income[319] - Total net income for the company was $230.1 million for the year ended December 31, 2024, a decrease from $234.9 million in 2023[317] Capital Ratios - FHI's CET1 capital ratio and Tier 1 capital ratio were each 12.80% as of December 31, 2024, exceeding the minimum requirements[67] - The total capital ratio for FHI was 13.99% as of December 31, 2024, which is above the required minimum of 10%[67] - Under the Capital Rules, the minimum capital ratios include 4.5% CET1, 6.0% Tier 1 capital, and 8.0% total capital to risk-weighted assets[61] Loans and Leases - Total loans and leases were $14.4 billion as of December 31, 2024, an increase of $54.8 million or less than 1% from December 31, 2023[361] - Commercial and industrial loans increased by $82.1 million or 4% to $2.2 billion as of December 31, 2024[363] - Commercial real estate loans increased by $123.7 million or 3% to $4.5 billion as of December 31, 2024[364] - The total residential loan portfolio was $5.3 billion, with residential mortgages making up a significant portion at $4.2 billion[375] - The company evaluates loans for impairment and non-accrual status, with loans on non-accrual status generally classified as impaired[378] Non-Performing Assets - Total Non-Performing Assets (NPAs) increased to $20.7 million as of December 31, 2024, up by $2.1 million or 11% from $18.6 million in 2023[383] - The ratio of NPAs to total loans and leases and Other Real Estate Owned (OREO) was 0.14% as of December 31, 2024, an increase of one basis point from 0.13% in 2023[383] - Residential mortgage non-accrual loans rose to $12.8 million, a significant increase of $5.1 million or 68% from $7.6 million in 2023[384] Deposits - Total deposits decreased by $1.0 billion or 5% to $20.3 billion as of December 31, 2024, primarily due to a $747.6 million decrease in public time deposit balances[399] - The amount of deposits exceeding FDIC insurance limits was estimated to be $9.9 billion or 49% of total deposits as of December 31, 2024, compared to $10.8 billion or 51% in 2023[401] Investment Securities - The carrying value of the investment securities portfolio was $5.7 billion as of December 31, 2024, a decrease of $579.6 million or 9% compared to December 31, 2023[352] - The total available-for-sale securities decreased from $2,255.3 million in 2023 to $1,926.5 million in 2024[349] - The total held-to-maturity securities decreased from $4,041.4 million in 2023 to $3,790.7 million in 2024[349] Other Financial Metrics - The company charged off $22.0 million in loans and leases in 2024, compared to $23.5 million in 2023, with net charge-offs of $13.6 million[390] - The allowance for credit losses (ACL) was considered adequate as of December 31, 2024, based on ongoing analysis of expected credit losses and economic outlook[393] - Goodwill remained unchanged at $995.5 million as of December 31, 2024, with no impairment identified for the year[395]

Core Viewpoint - First Hawaiian (FHB) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock performance [1][7]. Earnings Estimate Revisions - Current-quarter earnings are projected at $0.46 per share, reflecting a year-over-year increase of +9.52%. Over the past 30 days, three estimates have been revised upward, with no negative revisions, leading to a 13.11% increase in the Zacks Consensus Estimate [4]. - For the full year, the earnings estimate stands at $1.89 per share, representing a +5.59% change from the previous year. In the last month, four estimates have been raised, resulting in a 10.94% increase in the consensus estimate [5]. Analyst Sentiment - There is a strong consensus among analysts regarding the upward revision of earnings estimates for First Hawaiian, which has contributed to a favorable Zacks Rank of 1 (Strong Buy). This ranking is based on a proven track record of outperforming the market [3][6]. Stock Performance - The stock has experienced a 9.8% gain over the past four weeks, driven by positive earnings growth prospects, suggesting that it may be a timely addition to investment portfolios [7].

For the quarter ended December 2024, First Hawaiian (FHB) reported revenue of $161.96 million, down 22.9% over the same period last year. EPS came in at $0.41, compared to $0.37 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $186.28 million, representing a surprise of -13.06%. The company delivered an EPS surprise of +2.50%, with the consensus EPS estimate being $0.40.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...