• Net Interest Income: $156.7 million, an increase of $3.9 million from the prior quarter.

• Net Interest Margin: Increased by 3 basis points, with expectations to decline modestly to around 2.9% in the fourth quarter.

• Non-Interest Income: $53.3 million, up by $1.5 million from the previous quarter.

• Total Deposits: Decreased by $91 million, driven by a $112 million decline in total public deposits.

• Commercial Deposits: Increased by $112 million.

• Non-Interest Expenses: Increased by $4.1 million from the prior quarter, with a $3.8 million tax reserve release having no impact on net income.

• Total Loans: Decreased by $119 million compared to the prior quarter.

• Allowance for Credit Losses (ACL): Increased by $3.2 million to $163.7 million, with coverage at 115 basis points of total loans and leases.

• Classified Assets: Increased by $64.6 million due to a couple of downgrades.

• Warning! GuruFocus has detected 8 Warning Signs with MYFW.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• First Hawaiian Inc (NASDAQ:FHB) reported stable deposit costs with only a 1 basis point increase from the previous quarter.

• The company maintained a solid credit performance with strong and stable credit risk metrics.

• First Hawaiian Inc (NASDAQ:FHB) plans to resume share repurchases in the fourth quarter due to strong and growing capital levels.

• Non-interest income increased by $1.5 million from the prior quarter, driven by higher credit and debit card fees and BOLI income.

• The bank's balance sheet remains well-capitalized, with ample liquidity and favorable AOCI changes.

Negative Points

• Unexpected loan payoffs were a headwind, leading to a $119 million decrease in total loans compared to the prior quarter.

• Total deposits decreased by $91 million, driven by a decline in total public deposits.

• The net interest margin is expected to decline modestly in the fourth quarter.

• Classified assets increased by $64.6 million due to a couple of downgrades, although these loans are well-collateralized.

• The housing market showed mixed signals, with a decrease in the median sales price for condos on Oahu by 2.8% compared to the previous year.

Q & A Highlights

Q: How does the pipeline look for growth, and where are you seeing opportunities? A: Robert Harrison, CEO, mentioned that opportunities continue to be in the commercial real estate space, both in Hawaii and on the West Coast, as well as in the dealer floor plan area. The consumer side remains soft, with little activity in residential or home equity.