First Hawaiian (FHB) Q4 2023 earnings summary

Executive summary

• Q4 net income was $47.5 million and diluted EPS was $0.37; gross loans and leases rose $21.2 million QoQ while deposits declined $178.8 million.

• Results included a $16.3 million FDIC special assessment expense, or $12.0 million after tax.

Financial highlights

• Q4 net interest income was $151.8 million, down $5.4 million, or 3.4%, QoQ, and $171.8 million in Q4 2022; noninterest income was $58.3 million and noninterest expense was $142.3 million.

• Provision for credit losses was $5.3 million; noninterest income rose $12.3 million QoQ and noninterest expense rose $22.9 million.

• FY 2023 net income was $235.0 million versus $265.7 million in 2022; diluted EPS was $1.84 versus $2.08.

Outlook and guidance

• Proceeds from the securities sale are intended to reduce high-cost deposits, with the stated aim of increasing NIM and net interest income in 2024.