First Hawaiian(FHB)2025-02-28 21:10Employee 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 185.8 million, a decrease of 31.1 million for the year ended December 31, 2024, up 64.4 million for the year ended December 31, 2024, an increase of 45.9 million for the year ended December 31, 2024, an increase of 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 0.1 million compared to 2023, while it increased by 238.4 million for the year ended December 31, 2024, an increase of 48.7 million increase in net interest income[319] - Total net income for the company was 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 54.8 million or less than 1% from December 31, 2023[361] - Commercial and industrial loans increased by 2.2 billion as of December 31, 2024[363] - Commercial real estate loans increased by 4.5 billion as of December 31, 2024[364] - The total residential loan portfolio was 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 2.1 million or 11% from 12.8 million, a significant increase of 7.6 million in 2023[384] Deposits - Total deposits decreased by 20.3 billion as of December 31, 2024, primarily due to a 9.9 billion or 49% of total deposits as of December 31, 2024, compared to 5.7 billion as of December 31, 2024, a decrease of 2,255.3 million in 2023 to 4,041.4 million in 2023 to 22.0 million in loans and leases in 2024, compared to 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]