First Hawaiian, Inc. (NASDAQ:FHB) has reported its financial results for the fourth quarter of 2024, showing strong performance across key earnings drivers. The company's net income for the quarter was $52.5 million, or $0.41 per diluted share. This represents a positive trend from the prior quarter.
The total loans and leases increased by $166.9 million compared to the previous quarter, reaching $14.4 billion. Additionally, total deposits increased by $94.5 million, totaling $20.3 billion for the quarter ended December 31, 2024.
Net interest income for the fourth quarter of 2024 was $158.8 million, reflecting an increase of $2.0 million, or 1.3%, compared to the prior quarter. The net interest margin also increased by 8 basis points to 3.03% from 2.95% in the prior quarter.
The company recorded a $0.8 million negative provision for credit losses in the quarter, reflecting an improvement from the $7.4 million provision for credit losses in the prior quarter.
Noninterest income for the fourth quarter of 2024 was $29.4 million, indicating a decrease of $23.9 million compared to the prior quarter. This decrease was primarily attributed to a $26.2 million loss on the sale of investment securities.
Furthermore, noninterest expense decreased by $2.0 million to $124.1 million in the fourth quarter of 2024 compared to $126.1 million in the prior quarter. However, the efficiency ratio increased to 65.5% from 59.8% for the quarters ended December 31, 2024, and September 30, 2024, respectively.
The effective tax rate also improved, standing at 18.9% for the quarter ended December 31, 2024, compared to 19.6% for the prior quarter.
Asset quality indicators showed positive trends, with the allowance for credit losses at $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024, compared to $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024. The net charge-offs decreased to $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024, from $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the prior quarter.
First Hawaiian, Inc. also declared a quarterly cash dividend of $0.26 per share, payable on February 28, 2025, to stockholders of record at the close of business on February 14, 2025. Additionally, the company's board of directors adopted a stock repurchase program for up to $100.0 million of its outstanding common stock during 2025.
First Hawaiian, Inc. is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam, and Saipan. Today the company's shares have moved 2.9% to a price of $27.56. Check out the company's full 8-K submission here.
