First Hawaiian, Inc. (FHB) Bundle
An Overview of First Hawaiian, Inc. (FHB)
General Summary of First Hawaiian, Inc. (FHB)
First Hawaiian, Inc. (FHB), established in 1858, is the oldest bank in Hawaii and serves as a key financial institution in the region. The company operates through a network of branches primarily in Hawaii, as well as in Guam and Saipan. FHB offers a variety of banking products and services, including retail banking, commercial banking, wealth management, and treasury services.
As of 2024, FHB reported total assets of $23.8 billion and total deposits amounting to $20.2 billion. The company also has a loan portfolio totaling $14.2 billion, with a diverse range of loan products including residential mortgages, commercial real estate loans, and consumer loans.
Company's Financial Performance in the Latest Financial Reports
In the nine months ended September 30, 2024, First Hawaiian, Inc. reported a net income of $177.6 million, reflecting a decrease of $9.8 million or 5% compared to the same period in 2023. Basic earnings per share were $1.39, down from $1.47 in 2023.
Key financial highlights include:
- Net interest income of $464.0 million, a decrease of $20.3 million or 4% compared to the same period in 2023.
- Noninterest income increased to $156.4 million, an increase of $14.0 million or 10% year-over-year.
- Provision for credit losses was $15.5 million, down 27% from the previous year.
- Total noninterest expense reached $377.0 million, increasing by $18.2 million or 5% compared to the same period in 2023.
The efficiency ratio for the nine months ended September 30, 2024, was 60.38%, compared to 56.86% for the same period in 2023, indicating a slight decline in operational efficiency.
Introduction to Company as a Leader in the Industry
First Hawaiian, Inc. is recognized as one of the leading financial institutions in the Pacific region, known for its strong commitment to customer service and community involvement. FHB's robust capital position is highlighted by a Common Equity Tier 1 (CET1) ratio of 13.03% as of September 30, 2024, indicating a well-capitalized status. The bank's strategic focus on enhancing its product offerings and expanding its market presence has positioned it favorably within a competitive landscape.
In addition, FHB's investment portfolio, valued at $5.9 billion, consists primarily of high-grade securities, ensuring a solid foundation for future growth. The bank continues to adapt to changing market conditions, making it a noteworthy contender in the banking sector.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $61.5 million | $58.2 million | +6% |
| Basic EPS | $0.48 | $0.46 | +4% |
| Net Interest Income | $156.7 million | $157.1 million | -<1% |
| Noninterest Income | $53.3 million | $46.1 million | +16% |
| Provision for Credit Losses | $7.4 million | $7.5 million | -1% |
| Total Assets | $23.8 billion | N/A | N/A |
| Total Deposits | $20.2 billion | N/A | N/A |
Mission Statement of First Hawaiian, Inc. (FHB)
Mission Statement Overview
First Hawaiian, Inc. (FHB) operates with a mission statement that emphasizes its commitment to providing exceptional financial services tailored to the needs of its clients. The mission statement serves as a guiding principle for the company’s long-term objectives and operational strategies, ensuring that all employees understand their role in delivering high-quality products and services.
Core Component 1: Customer Commitment
FHB prioritizes customer satisfaction by offering personalized banking solutions. As of September 30, 2024, the total deposits amounted to $20.2 billion, a decrease of $1.1 billion or 5% from December 31, 2023. This reflects FHB's approach to maintaining strong relationships with its clientele despite market fluctuations.
| Deposit Type | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Demand Deposits | $6,006,013 | $6,609,483 | - $603,470 |
| Savings Deposits | $5,430,112 | $5,986,066 | - $555,954 |
| Money Market Deposits | $3,729,837 | $3,583,191 | + $146,646 |
| Time Deposits | $2,985,792 | $3,162,658 | - $176,866 |
| Total Deposits | $20,227,702 | $21,332,657 | - $1,104,955 |
Core Component 2: Employee Engagement
FHB believes that a motivated workforce leads to superior customer service. In the nine months ended September 30, 2024, the company reported a net income of $177.6 million, a decrease of $9.8 million or 5% compared to the same period in 2023. This highlights the importance of employee performance in achieving financial goals, even amidst challenges.
Employee-related expenses increased by 6% to $126.1 million in the third quarter of 2024, indicating FHB's commitment to investing in its workforce.
Core Component 3: Community Involvement
FHB has a strong focus on community engagement and social responsibility. The bank's initiatives include supporting local businesses and contributing to community development projects. As of September 30, 2024, FHB's total loans and leases stood at $14.2 billion, a decrease of $112.1 million or 1% from December 31, 2023. This reflects the bank's ongoing efforts to provide financial support to the local economy, particularly in the wake of natural disasters that have affected Hawaii.
Moreover, FHB's Common Equity Tier 1 (CET1) capital ratio was reported at 13.03%, well above the minimum requirement of 4.50%, demonstrating the bank’s strong capital position and commitment to sustainable growth.
Vision Statement of First Hawaiian, Inc. (FHB)
Vision Statement of First Hawaiian, Inc. (FHB)
The vision statement of First Hawaiian, Inc. (FHB) as of 2024 focuses on being the premier bank in Hawaii, Guam, and Saipan, emphasizing customer service, community engagement, and innovation in financial solutions.
Customer-Centric Approach
FHB aims to provide exceptional service to its customers by understanding their needs and delivering tailored financial solutions. This commitment is reflected in the bank's performance metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $177.6 million | $187.5 million |
| Basic Earnings Per Share | $1.39 | $1.47 |
| Return on Average Total Assets | 0.99% | 1.01% |
| Return on Average Stockholders' Equity | 9.37% | 10.72% |
Community Engagement
FHB is committed to supporting the communities it serves, focusing on local development and sustainability. The bank's community investment is evident through various initiatives:
- Investment in local businesses and infrastructure.
- Support for educational programs and scholarships.
- Engagement in environmental sustainability projects.
Innovation and Technology
FHB embraces technology to enhance customer experience and operational efficiency. In 2024, the bank has implemented several technological advancements:
- Launch of a mobile banking app with enhanced features.
- Implementation of AI-driven customer service solutions.
- Investment in cybersecurity measures to protect customer data.
Financial Performance Overview
FHB's financial performance in 2024 showcases its ability to adapt and thrive in a competitive banking landscape:
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets | $23.78 billion | $24.93 billion |
| Total Deposits | $20.23 billion | $21.33 billion |
| Net Interest Income | $464.0 million | $484.3 million |
| Noninterest Income | $156.4 million | $142.5 million |
Through these efforts, FHB continues to strengthen its vision of being the leading financial institution in its markets, dedicated to customer satisfaction, community welfare, and innovative banking solutions.
Core Values of First Hawaiian, Inc. (FHB)
Integrity
Integrity is a foundational value at First Hawaiian, Inc. (FHB) that emphasizes honesty, transparency, and ethical behavior in all interactions. This value is critical for maintaining trust with customers, employees, and stakeholders.
FHB demonstrates its commitment to integrity through its rigorous compliance programs and ethical training for employees. In 2024, the bank reported a compliance program satisfaction rate of over 90% among employees, reflecting the effectiveness of its training initiatives.
Moreover, FHB's Code of Conduct outlines the expected standards of behavior, ensuring that all employees understand the importance of integrity in their roles. The bank also conducts regular audits to ensure adherence to these standards, with 100% of audits completed on schedule in 2024.
Customer Commitment
Customer commitment at FHB focuses on providing exceptional service and meeting the needs of customers. This value is crucial for fostering long-term relationships and ensuring customer satisfaction.
In 2024, FHB launched a new digital banking platform aimed at enhancing customer experience. The platform has already seen a 25% increase in customer engagement since its launch. Additionally, the bank achieved a Net Promoter Score (NPS) of 72, indicating high customer loyalty and satisfaction.
FHB also supports local communities through various initiatives, including financial literacy programs that reached over 10,000 individuals in 2024, demonstrating its commitment to empowering customers beyond traditional banking services.
Teamwork
Teamwork is vital at FHB, fostering collaboration and unity among employees to achieve common goals. This value enhances productivity and creates a positive work environment.
In 2024, FHB implemented a new team collaboration tool that has improved project completion times by 30%. The bank also reported a 15% increase in employee engagement scores, indicating a stronger sense of teamwork and collaboration among staff.
Furthermore, FHB promotes inclusivity through its Employee Resource Groups (ERGs), which help foster a culture of belonging and support. These groups have grown by 20% in participation this year, reflecting the bank's dedication to teamwork.
Excellence
Excellence signifies FHB's pursuit of high standards in service delivery and operational performance. This value drives the bank to continually improve and innovate.
In 2024, FHB was recognized as one of the top banks in the region for its operational efficiency, achieving an efficiency ratio of 60.38%. This performance is attributed to ongoing process improvements and a focus on customer service excellence.
The bank also invests in employee development, with 75% of employees participating in professional development programs in 2024, ensuring that staff are equipped with the skills necessary to provide excellent service.
Community Involvement
Community involvement reflects FHB's commitment to giving back and supporting the communities it serves. This value underscores the bank's role as a responsible corporate citizen.
In 2024, FHB contributed over $2 million to local charities and community organizations. Additionally, employees volunteered more than 5,000 hours to various community service projects, reinforcing the bank's dedication to making a positive impact.
FHB's initiatives, such as the "Banking on the Future" program, aim to support local entrepreneurs, providing resources and mentorship to over 200 small businesses this year.
| Core Value | Key Initiatives | 2024 Impact |
|---|---|---|
| Integrity | Compliance training, Code of Conduct adherence | 90% employee satisfaction with compliance programs |
| Customer Commitment | Digital banking platform, financial literacy programs | 25% increase in engagement, 10,000 reached in literacy |
| Teamwork | Collaboration tools, Employee Resource Groups | 30% faster project completion, 15% increase in engagement |
| Excellence | Operational efficiency improvements, employee development | 60.38% efficiency ratio, 75% employee training participation |
| Community Involvement | Charitable contributions, employee volunteerism | $2 million in donations, 5,000 volunteer hours |
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Updated on 16 Nov 2024
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.