First Hawaiian (FHB) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $61.9 million, or $0.48 per diluted share, up from $54.2 million in Q1 2024 and nearly flat year-over-year; diluted EPS rose from $0.42 sequentially.

• Total loans and leases increased by $39.7 million sequentially, while total deposits decreased by $350.6 million, mainly from a $216 million drop in public deposits.

• Credit quality and asset quality remained strong, with allowance for credit losses stable at 1.12% and no areas of concern identified.

• Board declared a quarterly dividend of $0.26 per share, consistent with the prior quarter and payable August 30, 2024.

• Continued community support with $1 million in Maui Wildfire relief funding.

Financial highlights

• Net interest income was $152.9 million, down $1.6 million from Q1 2024 and $7.1 million year-over-year, with net interest margin at 2.92%, up 1 bp sequentially.

• Noninterest income reached $51.8 million, up $0.4 million sequentially and $4.4 million year-over-year, aided by insurance proceeds.

• Noninterest expense decreased by $6.7 million to $122.1 million compared to Q1 2024, with Q1 including a $4.1 million FDIC special assessment.

• Efficiency ratio improved to 59.2% from 62.2% in Q1 2024.

• Return on average total assets was 1.04%, and return on average tangible equity was 16.42%.

Outlook and guidance

• Expecting low single-digit loan growth for the full year, with stronger production anticipated in the second half, especially Q4.

• Net interest margin expected to remain relatively flat in Q3, with potential for upward trend depending on rate cuts.

• Quarterly noninterest income projected in the $49–$50 million range; expense run rate expected around $125 million per quarter.

• Management remains focused on prudent loan growth, managing deposit costs, and maintaining strong capital and liquidity amid ongoing market uncertainty.

• Planning to restart share buybacks in the second half of the year; $40 million remains authorized for 2024.