8-K: First Hawaiian, Inc. Appoints Tertia Freas to Board of Directors

First Hawaiian, Inc. has appointed Tertia Freas to its Board of Directors and the Board of Directors of First Hawaiian Bank, effective immediately.

Summary

• First Hawaiian, Inc. has increased its Board of Directors from nine to ten members.
• Tertia M. Freas has been appointed to fill the newly created board position, effective October 15, 2024.
• Ms. Freas has also been appointed to the Audit Committee of the Board and the board of directors of First Hawaiian Bank.
• She will receive a one-time award of restricted stock units valued at $36,446 as compensation for her service.
• Ms. Freas has extensive experience in public accounting, including over 20 years as an audit partner at Deloitte & Touche LLP.
• She also has a history of community service and involvement with various non-profit organizations in Hawaii.

Sentiment

Score: 8

Explanation: The document reflects a positive development with the appointment of a qualified individual to the board, indicating a stable and well-managed company.

Positives

• The appointment of Tertia Freas brings significant financial and accounting expertise to the board.
• Ms. Freas's extensive experience in public accounting and community service is seen as a valuable addition to the leadership team.
• The expansion of the board may bring fresh perspectives and enhance corporate governance.

Management Comments

• Bob Harrison, First Hawaiian, Inc. Chairman, President and CEO, stated that he is pleased to welcome Tertia Freas and looks forward to collaborating with her.
• He also noted that her deep expertise in accounting and finance and her commitment to community service make her an outstanding addition to the leadership team.

Industry Context

The appointment of a seasoned financial expert like Ms. Freas aligns with the banking industry's focus on strong financial oversight and corporate governance.

Comparison to Industry Standards

• The appointment of a director with extensive audit experience is a common practice in the financial industry, similar to appointments at other regional banks such as Bank of Hawaii and Central Pacific Bank.
• The compensation package, including restricted stock units, is consistent with industry standards for non-employee directors at comparable financial institutions.

Management Changes

Related Party Transactions

• Ms. Freas has loans with First Hawaiian Bank made in the ordinary course of business, on substantially the same terms as those for comparable loans with unrelated parties.

Stakeholder Impact

• Shareholders may view the appointment of a qualified director positively, potentially increasing confidence in the company's governance.
• Employees may see the addition of an experienced director as a sign of stability and growth.
• Customers and suppliers are unlikely to be directly impacted by this appointment.

Key Dates

Keywords

Board of Directors, Tertia Freas, Audit Committee, First Hawaiian Bank, Corporate Governance, Accounting, Finance, Deloitte & Touche LLP