NASDAQ$FHB

First Hawaiian Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

First Hawaiian's financial performance remained solid with stable loan balances, growth in consumer and commercial deposits, and excellent credit quality. The company strategically sold low-yielding securities to strengthen the balance sheet and enhance future earnings potential.

First Hawaiian, Inc. reported a net income of $47.5 million, or $0.37 per diluted share, for the fourth quarter of 2023. The company's loan balances were stable, and it experienced growth in consumer and commercial deposits. However, total deposits decreased, and the net interest margin also saw a slight decrease. The company sold low-yielding securities to improve future earnings.

  • Net income reached $47.5 million, translating to $0.37 per diluted share.
  • Total loans and leases saw a slight increase of $21.2 million compared to the prior quarter.
  • Total deposits experienced a decrease of $178.8 million compared to the previous quarter.
  • Net interest margin declined by 5 basis points, settling at 2.81%.

Headline financials

Total Revenue

$210M

Previous: $220M-4.5%
EPS (adj)

$0.37

Previous: $0.62-40.3%
Net Income

$47.5M

Previous: $79.6M-40.3%
Operating Income

$62.5M

Previous: $103M-39.4%
Gross Profit

$299M

Previous: $211M+41.7%
Stock-Based Comp

$2.45M

Previous: $2.58M-5.2%

Revenue & EPS history

First Hawaiian · Revenue · Quarterly

$210M

Q4 2023-4.5%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

First Hawaiian · $53.6M total across 6 segments · Q4 2020

  • Credit and Debit Card Fees
    $15.6M
  • Other
    $9.96M
  • Trust and Investment Services Income
    $8.73M
  • Other Service Charges and Fees
    $8.4M
  • Service Charges on Deposit Accounts
    $6.77M
  • Bank-Owned Life Insurance
    $4.16M

Forward guidance

First Hawaiian's management outlined key strategies and expectations for the upcoming periods, focusing on leveraging balance sheet actions to enhance profitability and manage costs effectively.

Tailwinds

  • Anticipate increased net interest margin and net interest income in 2024 through the reduction of high-cost deposits.
  • Expect to reinvest proceeds from securities sales into higher-yielding assets.
  • Aim to maintain stable loan balances and grow consumer and commercial deposits.
  • Focus on sustaining excellent credit quality through proactive risk management.
  • Committed to optimizing capital allocation through stock repurchase program.

Headwinds

  • Uncertainty surrounding the timing and amount of share repurchases, subject to market conditions and the company's financial performance.
  • Potential for continued fluctuations in interest rates and their impact on net interest margin.
  • Risk of increased competition for deposits and loans in the market.
  • Impact of regulatory changes and assessments on expenses and profitability.
  • Challenges in managing noninterest expenses and maintaining efficiency ratio targets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

51%

23 / 45 earnings

Positive

+11.0%

Q1 2020

Best reaction

-9.1%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-0.1%+1.4%
Q4 2025-3.8%-1.6%-10.2%
Q3 2025+4.7%+3.3%+3.9%
Q2 2025+0.2%-1.8%+2.2%
Q1 2025+0.8%-1.5%+0.6%
Q4 2024+3.1%+4.7%+0.4%
Q3 2024+4.0%+4.8%+16.3%
Q2 2024+0.4%-0.3%-3.4%
Q1 2024-2.5%-2.4%-6.8%
Q4 2023+5.3%+0.4%-2.1%
Q3 2023-0.7%-0.7%+5.4%
Q2 2023-5.6%-6.5%-14.8%
Q1 2023-6.0%-12.2%-13.2%
Q4 2022+5.7%+7.9%+6.6%
Q3 2022-0.9%-1.9%+3.5%
Q2 2022+5.4%+5.2%+7.4%
Q1 2022-6.8%-11.5%-11.0%
Q4 2021-1.1%-1.1%+0.6%
Q3 2021-1.2%-7.4%-6.6%
Q2 2021+3.5%+3.4%+0.4%
Q1 2021-0.3%+1.3%+4.4%
Q4 2020-1.7%-6.2%+8.0%
Q3 2020+5.4%-2.4%+28.2%
Q2 2020-9.1%-5.8%-12.6%
Q1 2020+11.0%+12.0%-2.6%
Q4 2019+2.0%+1.9%-12.3%
Q3 2019-1.7%-1.1%+0.5%
Q2 2019+2.9%+1.7%-6.7%
Q1 2019+1.3%+2.3%-4.0%
Q4 2018+4.5%+7.2%+9.7%
Q3 2018+1.4%+5.9%+7.5%
Q2 2018+0.4%+0.9%+3.2%
Q1 2018-0.7%-2.5%+1.9%
Q4 2017-7.8%-9.3%-9.8%
Q3 2017-2.1%-1.8%-6.3%
Q2 2017-2.3%+0.1%-8.2%
Q1 2016-2.2%-1.6%-7.2%
Q1 2017-2.5%-3.5%-8.0%
Q4 2015-0.3%-2.1%-9.7%
Q4 2014-0.3%-2.1%-9.7%
Q4 2016+4.5%+3.8%-1.9%
Q3 2015+4.3%+7.1%+21.7%
Q3 2016+0.5%-0.5%+17.6%
Q2 2016+2.2%+1.0%+2.6%
Q2 2015+2.2%+1.0%+2.6%
Q1 2015

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro