DEF 14A: First Hawaiian Bancorp Invites Stockholders to 2024 Annual Meeting, Highlights 2023 Performance

First Hawaiian, Inc. announces its 2024 Annual Meeting of Stockholders and reviews its resilient 2023 performance amidst industry challenges.

Summary

• First Hawaiian, Inc. (FHB) invites stockholders to its 2024 Annual Meeting on April 24, 2024, to be held via live webcast.
• The meeting will address the election of directors, executive compensation, the frequency of say-on-pay votes, and the ratification of the independent auditor.
• FHB highlights its 2023 performance, noting a challenging interest rate environment and mainland bank failures.
• Despite uncertainty, FHB grew loans and leases by $261.5 million, a 2% increase year-over-year, while maintaining asset quality.
• The net interest margin increased by 14 basis points to 2.92%.
• The Common Equity Tier 1 capital ratio improved from 11.82% to 12.39%.
• The company approved a $40 million stock repurchase program for 2024.
• Net income was $235.0M.
• Diluted earnings per share were $1.84.
• Total assets reached $24.9B at December 31, 2023.
• The combined deposit base was the largest in Hawaii, Guam, and Saipan, totaling $21.3B.
• The net interest margin was 2.92%, up 14 basis points.
• Return on average total stockholders equity was 10.01%, and return on average tangible stockholders equity was 17.39%.

Sentiment

Score: 7

Explanation: The document presents a balanced view, highlighting both the challenges faced and the achievements made. The tone is positive, emphasizing the company's resilience and commitment to stakeholders.

Positives

• FHB grew loans and leases by $261.5 million, a 2% increase year-over-year, while maintaining asset quality.
• The net interest margin increased by 14 basis points to 2.92%.
• The Common Equity Tier 1 capital ratio improved from 11.82% to 12.39%.
• The company approved a $40 million stock repurchase program for 2024.
• The company made $132.6 million in dividend payments and maintained a quarterly dividend of $0.26 per share.

Negatives

• Deposit outflows of $356.4 million were experienced due to rising interest rates.

Risks

• The document mentions uncertainty in 2023 due to mainland bank failures and a challenging interest rate environment.
• The timing and amount of share repurchases are influenced by various internal and external factors.

Future Outlook

The company aims to continue optimizing new technologies and building a diverse workforce to maintain its competitive standing.

Management Comments

• Robert S. Harrison, Chairman, President and CEO: '2023 was marked by uncertainty as evidenced by a set of events not seen in decades putting the banking industry to the test.'
• Robert S. Harrison, Chairman, President and CEO: 'Against the backdrop of three prominent mainland bank failures and a challenging interest rate environment, we continued to focus on what we do bestoffer great customer service, consistently evolve our diverse product portfolio, demonstrate economic support for our communities and deliver tangible financial results.'

Industry Context

The document references the failure of three prominent mainland banks, indicating a challenging environment for the banking industry.

Comparison to Industry Standards

• The document mentions First Hawaiian Bank being named to the World's Best Banks list published by Forbes for a second year.
• First Hawaiian Bank was listed as a Top Hawaii Bank (Forbes) and the Best Big Bank in Hawaii by Newsweek magazine.

Stakeholder Impact

• The company's performance and governance practices impact shareholders through stock value and dividend payments.
• The company's community support initiatives impact local communities.
• The company's commitment to employees impacts their career advancement and well-being.
• The company's focus on customer service impacts customer satisfaction.

Next Steps

• Stockholders are encouraged to attend the 2024 Annual Meeting on April 24, 2024.
• Stockholders are encouraged to read the 2024 Proxy Summary, the 2023 Annual Report to Stockholders, and the Annual Report on Form 10-K for the year ended December 31, 2023 prior to the meeting.
• Stockholders are asked to vote on the proposals outlined in the proxy statement.

Key Dates

Keywords

Annual Meeting, Stockholders, Executive Compensation, Financial Performance, First Hawaiian Bank, FHB, Hawaii, Governance, Directors, Loans, Deposits, Net Interest Margin, Capital Ratio, Stock Repurchase