First Hawaiian (FHB) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 saw strong performance with growth in loans and deposits, higher net interest income, expanded net interest margin, controlled expenses, and excellent credit quality.

• Net income for Q4 2024 was $52.5 million, down from $61.5 million in Q3 2024, impacted by a $26.2 million pre-tax loss on sale of investment securities.

• Restructured $290 million of low-yielding securities, reinvesting in higher-yielding assets, resulting in a $26.2 million pre-tax loss.

• Declared a $0.26 per share quarterly dividend and approved a $100 million stock repurchase program for 2025; 1.5 million shares repurchased in Q4, returning $40 million to shareholders.

• Asset quality remained strong with a negative provision for credit losses and low levels of nonperforming assets.

Financial highlights

• Net interest income was $158.8 million, up $2.1 million sequentially; NIM rose to 3.03%.

• Noninterest income was $29.4 million, including a $26.2 million pre-tax loss from securities sale.

• Noninterest expenses were $124.1 million, down $2 million from the prior quarter.

• Efficiency ratio increased to 65.5% from 59.8% in Q3 2024.

• Diluted EPS was $0.41, down from $0.48 in Q3 2024.

Outlook and guidance

• Full-year 2025 loan growth expected in the low to mid single-digit range.

• NIM projected at 3.06% in Q1 2025, with three basis points of expansion per quarter if rate cuts occur as expected.

• Non-interest income run rate expected to average $51 million per quarter in 2025.

• Expenses forecasted to rise about 2% to $510 million in 2025.

• Management expects the investment portfolio restructuring and positive Q4 trends to enhance future earnings power entering 2025.