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First Hawaiian reports stable Q3 with increased net income

Published 25/10/2024, 13:58
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HONOLULU - First Hawaiian, Inc. (NASDAQ:FHB) announced its financial results for the third quarter ending September 30, 2024, signaling a robust quarter with an uptick in net interest income and a steady control on expenses. The company's net income stood at $61.5 million, with earnings per diluted share at $0.48.

Despite a decrease in total loans and leases by $118.5 million and a $91.1 million reduction in total deposits compared to the previous quarter, First Hawaiian achieved a net interest margin increase of 3 basis points to 2.95%. The provision for credit losses was recorded at $7.4 million.

The company's balance sheet reflected total assets of $23.8 billion, marking a 0.9% decrease from the $24.0 billion reported as of June 30, 2024. The allowance for credit losses was $163.7 million, or 1.15% of total loans and leases, a slight increase from the prior quarter's 1.12%.

First Hawaiian's asset quality remained strong, with net charge-offs representing only 0.11% of average loans and leases on an annualized basis. Non-performing assets stood at 0.13% of total loans and leases and other real estate owned.

The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 29, 2024, to shareholders of record as of November 18, 2024.

In the third quarter, First Hawaiian Bank's long-term credit and deposit ratings were reviewed and reaffirmed by Moody's (NYSE:MCO), as mentioned by Chairman, President, and CEO Bob Harrison.

First Hawaiian, Inc.'s capital ratios remained solid, with the tier 1 leverage, common equity tier 1, and total capital ratios at 9.14%, 13.03%, and 14.25%, respectively, as of September 30, 2024.

The information is based on a press release statement.

In other recent news, First Hawaiian, Inc. has been making significant strides in its operations. The company recently reported a robust financial performance for the first and second quarters of 2024, with a net income of $54.3 million in Q1, bolstered by a significant increase in net interest income and strategic balance sheet optimization. In addition, Piper Sandler, after reviewing First Hawaiian's Q2 results, adjusted its outlook on the company's shares, raising the price target to $27 from $22 while maintaining a Neutral rating.

The bank's Q2 performance also reflected a strong local economy in Hawaii, with good loan production and managed deposit costs. This led to the anticipation of low-single-digit loan growth for the full year and plans to restart share buybacks in the latter half of the year. In another development, First Hawaiian, Inc. announced the appointment of Tertia Freas to its Board of Directors, a strategic move aimed at bolstering the bank's governance and oversight.

These recent developments highlight First Hawaiian's ongoing commitment to leadership excellence, corporate governance, and financial resilience amidst shifting economic landscapes.

InvestingPro Insights

First Hawaiian, Inc. (NASDAQ:FHB) continues to demonstrate financial resilience, as evidenced by its recent quarterly results and supported by data from InvestingPro. The company's market capitalization stands at $3.07 billion, reflecting its substantial presence in the banking sector.

An InvestingPro Tip highlights that First Hawaiian has maintained dividend payments for 9 consecutive years, aligning with the company's recent declaration of a $0.26 quarterly cash dividend. This consistency in dividend payments may appeal to income-focused investors, especially given the current dividend yield of 4.34%.

The company's P/E ratio of 13.77 suggests that the stock is reasonably valued compared to its earnings, which could be attractive to value investors. This is particularly noteworthy given that analysts predict the company will be profitable this year, as indicated by another InvestingPro Tip.

First Hawaiian's revenue for the last twelve months as of Q2 2024 was $802.87 million, with an impressive operating income margin of 40.7%. This strong margin, coupled with the company's profitability over the last twelve months, underscores its operational efficiency and ability to generate returns for shareholders.

It's worth noting that InvestingPro offers additional insights, with 11 more tips available for First Hawaiian, providing a more comprehensive analysis for investors seeking deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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