First Hawaiian Reports Strong Financial Growth

By Tamara Parker • Tuesday, February 11 06:08 • Permanent Link

First Hawaiian, Inc. has reported its financial performance for the year ended December 31, 2024. Here are the key highlights:

Strong, Consistent Financial Performance: The pre-tax, pre-provision earnings have shown a consistent pattern over the years, with a significant increase from $310 million in 2020 to $365 million in 2021 and further to $380 million in 2022. The return on average tangible assets (ROATA) has also been stable, ranging from 0.87% to 1.00% over the period, while the return on average tangible common equity (ROATCE) increased from 9.5% in 2020 to 12.1% in 2024.
Leading Position in Attractive Markets: The company has demonstrated a dominant loan and deposit position in attractive markets, with a significant increase in the loan portfolio from $14.4 billion in 2020 to $21.8 billion in 2024.
Low-Cost Core Deposit Base: First Hawaiian, Inc. has maintained a solid, low-cost core deposit base, with consistent deposit growth from $9.1 billion in 2007 to $21.7 billion in 2024. The cost of deposits has also been well-managed, with the company achieving a best-in-class cost of deposits of 0.87% in 2024.
Balanced Loan Portfolio: The company has exhibited steady, balanced loan growth, with loans showing a consistent increase from $6.5 billion in 2007 to $14.4 billion in 2024. The loan portfolio is well-diversified, with 56% commercial and 44% consumer loans.
Conservative Credit Risk Management: First Hawaiian, Inc. has maintained a proven, consistent, and conservative approach to credit risk management, evident from the nonperforming assets plus 90s to loans plus other real estate owned ratio, which has consistently remained low over the years.
Well-Capitalized with Attractive Dividend: The company has reported a robust capital position, with a tier 1 leverage ratio of 12.8% and a common equity tier 1 (CET1) capital ratio of 14.0% in 2024. Additionally, it has maintained an attractive dividend yield, demonstrating a commitment to returning excess capital to shareholders through dividends and share repurchases.

These metrics reflect the company's consistent and stable financial performance, indicating its strong position in the market and disciplined approach to capital management. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $27.15. For the full picture, make sure to review First Hawaiian's 8-K report.

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