First Hawaiian, Inc. (FHB) Bundle
A Brief History of First Hawaiian, Inc.
First Hawaiian, Inc. (FHI) is a bank holding company headquartered in Honolulu, Hawaii, with a rich history dating back to its founding in 1858. It is the oldest and largest bank in Hawaii and has grown significantly over the years through various acquisitions and expansions.
Company Overview as of 2024
As of September 30, 2024, First Hawaiian, Inc. reported total assets of $23.78 billion, a decrease from $24.93 billion at the end of 2023. The company’s total stockholders' equity was $2.65 billion, up from $2.49 billion year-over-year, reflecting a strong capital position.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $23,780,285 | $24,926,474 |
| Total Stockholders' Equity | $2,648,034 | $2,486,066 |
| Common Shares Outstanding | 127,886,167 | 127,618,761 |
Financial Performance
In the third quarter of 2024, FHI reported net income of $61.49 million, which is a year-over-year increase of 6% from $58.22 million in the same quarter of 2023. For the nine months ending September 30, 2024, net income was $177.63 million, down from $187.48 million in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $61,492 | $58,221 | $177,633 | $187,481 |
| Basic Earnings per Share | $0.48 | $0.46 | $1.39 | $1.47 |
| Dividend Declared per Share | $0.26 | $0.26 | $0.78 | $0.78 |
Loan and Lease Portfolio
As of September 30, 2024, FHI's total loans and leases amounted to $14.24 billion, slightly down from $14.35 billion at the end of 2023. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial and Industrial | $2,110,077 |
| Commercial Real Estate | $4,265,289 |
| Construction | $1,056,249 |
| Residential Mortgage | $4,187,060 |
| Home Equity Line | $1,159,823 |
| Consumer | $1,030,044 |
| Lease Financing | $432,828 |
Capital Ratios
FHI's capital ratios as of September 30, 2024, indicate a robust financial position with a Common Equity Tier 1 (CET1) ratio of 13.03%, up from 12.39% at the end of 2023. The total capital ratio stood at 14.25%, an increase from 13.57% in the previous year.
| Capital Ratio | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 13.03% | 12.39% |
| Total Capital Ratio | 14.25% | 13.57% | Tier 1 Leverage Ratio | 9.14% | 8.64% |
Overall, First Hawaiian, Inc. continues to demonstrate financial stability and growth potential in the competitive banking landscape of 2024.
A Who Owns First Hawaiian, Inc. (FHB)
Major Shareholders
As of September 30, 2024, the ownership structure of First Hawaiian, Inc. (FHB) is composed of various institutional and individual shareholders. The table below outlines the significant shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 13,422,000 |
| The Vanguard Group, Inc. | 8.9% | 11,256,000 |
| State Street Corporation | 6.7% | 8,378,000 |
| Wellington Management Group LLP | 5.1% | 6,500,000 |
| Other Institutions | 30.3% | 38,500,000 |
| Retail Investors | 38.5% | 49,000,000 |
Stock Performance
The stock performance of First Hawaiian, Inc. as of September 30, 2024, is as follows:
| Metric | Value |
|---|---|
| Current Share Price | $20.71 |
| Market Capitalization | $2.65 billion |
| Earnings per Share (EPS) | $1.39 |
| Dividend per Share | $0.78 |
| Dividend Yield | 3.77% |
Stockholder Equity
Total stockholders’ equity for First Hawaiian, Inc. as of September 30, 2024, is reported as follows:
| Category | Amount (in thousands) |
|---|---|
| Total Stockholders' Equity | $2,648,034 |
| Goodwill | $995,492 |
| Tangible Stockholders' Equity | $1,652,542 |
| Retained Earnings | $915,062 |
| Accumulated Other Comprehensive Loss | $(452,658) |
Recent Developments
In January 2024, First Hawaiian, Inc. announced a stock repurchase program for up to $40 million of its outstanding common stock during the year. As of September 30, 2024, no shares had been repurchased under this program.
Regulatory Capital Ratios
First Hawaiian, Inc. maintains strong regulatory capital ratios as of September 30, 2024:
| Ratio Type | Ratio |
|---|---|
| Common Equity Tier 1 Capital Ratio | 13.03% |
| Tier 1 Capital Ratio | 13.03% |
| Total Capital Ratio | 14.25% |
| Tier 1 Leverage Ratio | 9.14% |
Overall, First Hawaiian, Inc. demonstrates a solid ownership structure, strong stock performance, and healthy financial metrics as of 2024. The combination of institutional investors and retail ownership reflects a diverse shareholder base, contributing to the company's stability and growth potential.
First Hawaiian, Inc. (FHB) Mission Statement
Company Overview
First Hawaiian, Inc. (FHB) is one of the largest financial institutions in Hawaii, dedicated to providing a comprehensive range of financial services. The mission of FHB emphasizes customer service, community engagement, and operational excellence.
Current Mission Statement
As of 2024, First Hawaiian, Inc. articulates its mission statement focusing on the following key areas:
- Delivering exceptional customer service.
- Fostering a positive impact on the communities they serve.
- Maintaining a commitment to integrity and transparency in all operations.
- Providing a diverse range of financial solutions tailored to meet customer needs.
Financial Performance Highlights
First Hawaiian, Inc. has demonstrated resilience in its financial performance. Below are some key financial metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Net Income | $177.6 million |
| Basic Earnings Per Share | $1.39 |
| Diluted Earnings Per Share | $1.38 |
| Return on Average Total Assets | 0.99% |
| Return on Average Total Stockholders' Equity | 9.37% |
| Net Interest Income | $464.0 million |
| Noninterest Income | $156.4 million |
| Noninterest Expense | $377.0 million |
Balance Sheet Overview
As of September 30, 2024, First Hawaiian, Inc. reported a robust balance sheet:
| Balance Sheet Item | Value |
|---|---|
| Total Assets | $23.8 billion |
| Total Liabilities | $21.1 billion |
| Total Stockholders' Equity | $2.6 billion |
| Common Equity Tier 1 Capital Ratio | 13.03% |
| Book Value per Share | $20.71 |
Community Engagement
FHB emphasizes its commitment to the communities it serves by actively participating in local initiatives and supporting economic development.
Conclusion
As a leading financial institution, First Hawaiian, Inc. continues to uphold its mission through a blend of financial strength and community involvement, enhancing the lives of its customers and stakeholders.
How First Hawaiian, Inc. (FHB) Works
Overview of Operations
First Hawaiian, Inc. (FHB) operates as a financial services company, primarily engaged in providing banking products and services through its subsidiary, First Hawaiian Bank. The company offers a range of financial services, including commercial banking, consumer banking, and wealth management.
Financial Performance
As of September 30, 2024, First Hawaiian reported a net income of $177.6 million for the nine months ended September 30, 2024, which reflects a decrease of $9.8 million or 5% compared to the same period in 2023. The basic and diluted earnings per share were both $1.39 and $1.38 respectively, down from $1.47 for the same period in the prior year.
Key Financial Metrics
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $177.6 million | $187.4 million |
| Basic Earnings per Share | $1.39 | $1.47 |
| Diluted Earnings per Share | $1.38 | $1.47 |
| Return on Average Total Assets | 0.99% | 1.01% |
| Return on Average Stockholders' Equity | 9.37% | 10.72% |
| Net Interest Income | $464.0 million | $484.3 million |
| Efficiency Ratio | 60.38% | 56.86% |
Revenue Streams
FHB generates revenue through various channels, including:
- Net interest income, which was $464.0 million for the nine months ended September 30, 2024, down 4% year-over-year.
- Noninterest income, which increased by $14.0 million or 10% to $156.4 million for the same period.
- Service charges on deposit accounts and fees from credit and debit card transactions.
Loan Portfolio
As of September 30, 2024, FHB's total loans and leases amounted to $14.24 billion, representing a nominal decrease of 1% from December 31, 2023. The composition of the loan portfolio is as follows:
| Type of Loan | Amount ($ billion) |
|---|---|
| Commercial and Industrial | $2.11 |
| Commercial Real Estate | $4.27 |
| Construction | $1.06 |
| Residential Mortgage | $4.19 |
| Home Equity Line | $1.16 |
| Total Residential Loans | $5.35 |
| Consumer Loans | $1.03 |
| Lease Financing | $0.43 |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet of First Hawaiian reflects the following key figures:
| Balance Sheet Item | Amount ($ billion) |
|---|---|
| Total Assets | $23.78 |
| Total Deposits | $20.23 |
| Total Stockholders' Equity | $2.65 |
| Tangible Stockholders' Equity | $1.65 |
| Book Value per Share | $20.71 |
Capital Ratios
FHB maintains strong capital ratios, with a Common Equity Tier 1 (CET1) ratio of 13.03% as of September 30, 2024, an increase of 64 basis points from December 31, 2023. The ratios are as follows:
| Capital Ratio | Amount (%) |
|---|---|
| CET1 Ratio | 13.03% |
| Tier 1 Capital Ratio | 12.94% |
| Total Capital Ratio | 14.90% |
| Leverage Ratio | 9.28% |
Dividends
FHB declared dividends of $0.78 per share for the nine months ended September 30, 2024, maintaining a dividend payout ratio of 56.52%.
Recent Developments
FHB continues to focus on enhancing its digital banking capabilities and expanding its footprint in the markets it serves, while managing operational costs effectively.
How First Hawaiian, Inc. (FHB) Makes Money
Net Interest Income
First Hawaiian, Inc. generates a significant portion of its revenue through net interest income, which for the nine months ended September 30, 2024, was $464.0 million. This reflects a decrease of $20.3 million or 4% compared to the same period in 2023. The net interest margin stood at 2.93%, a decline of three basis points year-over-year. This decrease was primarily due to higher deposit funding costs and lower average balances in the investment securities portfolio, although it was partially offset by higher yields in the loan and lease portfolio.
Noninterest Income
First Hawaiian also earns noninterest income, which amounted to $156.4 million for the nine months ended September 30, 2024, marking an increase of $14.0 million or 10% from the prior year. This growth was driven by various factors:
- Service charges and fees increased by $5.0 million.
- Credit and debit card fees rose by $2.1 million.
- Other noninterest income rose by $3.9 million.
Revenue Breakdown
The following table summarizes the revenue sources for First Hawaiian, Inc. for the nine months ended September 30, 2024:
| Revenue Source | Amount (in thousands) |
|---|---|
| Net Interest Income | $464,000 |
| Noninterest Income | $156,400 |
| Total Revenue | $620,400 |
Loan and Lease Portfolio
As of September 30, 2024, total loans and leases were $14.2 billion, reflecting a decrease of 1% from the previous year. The composition of this portfolio is as follows:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial and Industrial Loans | $2,110,077 |
| Commercial Real Estate Loans | $4,265,289 |
| Residential Mortgage Loans | $4,187,060 |
| Consumer Loans | $1,030,044 |
| Lease Financing | $432,828 |
Cost Structure
For the nine months ended September 30, 2024, noninterest expenses totaled $377.0 million, an increase of $18.2 million or 5% compared to the previous year. Major components included:
- Salaries and employee benefits: $6.7 million increase.
- Equipment expense: $7.1 million increase.
- Regulatory assessments and fees: $3.7 million increase.
Profitability Ratios
First Hawaiian's profitability metrics for the nine months ended September 30, 2024, included:
- Return on Average Total Assets: 0.99%
- Return on Average Stockholders’ Equity: 9.37%
- Efficiency Ratio: 60.38%
Capital Position
As of September 30, 2024, First Hawaiian maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 13.03%, an increase from 12.39% at the end of 2023. This reflects the company's ability to absorb potential losses and support growth.
Dividends
During the nine months ended September 30, 2024, First Hawaiian declared dividends amounting to $99.7 million, maintaining a consistent dividend payout strategy.
Conclusion
First Hawaiian, Inc. continues to generate revenue through a diversified portfolio of loans and noninterest income sources, while managing its cost structure effectively to maintain profitability.
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Resources:
- First Hawaiian, Inc. (FHB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Hawaiian, Inc. (FHB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Hawaiian, Inc. (FHB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.