8-K: First Hawaiian, Inc. Investor Presentation Highlights Strong Financial Performance and Market Leadership

First Hawaiian, Inc.'s investor presentation emphasizes the company's consistent financial performance, leading market position in attractive markets, experienced leadership, high-quality balance sheet, proven performance through cycles, and strong capitalization with an attractive dividend.

Summary

• First Hawaiian, Inc. presented an investor presentation on February 10, 2025, highlighting its financial strengths and market position.
• The company emphasizes its strong and consistent financial performance, noting stable earnings drivers and a history of strong profitability.
• First Hawaiian has dominant loan and deposit positions in attractive markets, with consistent underwriting standards and disciplined expense management.
• The bank has a significant deposit advantage compared to other U.S. banks, experiencing more favorable deposit behavior across rate cycles.
• First Hawaiian maintains a high-quality, balanced loan portfolio with steady organic loan growth.
• The company has demonstrated proven, consistent, and conservative credit risk management through various economic cycles.
• First Hawaiian is well-capitalized and offers an attractive dividend yield.
• The bank's capital management approach includes retaining sufficient earnings for loan growth and returning excess capital to shareholders through dividends and share repurchases.
• In 2024, the company maintained a quarterly dividend of $0.26 per share and repurchased 1.5 million shares for $40 million.
• A repurchase authorization for up to $100 million of common stock is in place for 2025.

Sentiment

Score: 8

Explanation: The document presents a positive outlook on First Hawaiian's financial performance and market position, highlighting its strengths and consistent performance. The sentiment is strong due to the consistent positive messaging and comparisons to industry peers.

Positives

• First Hawaiian has a strong and consistent financial performance.
• The company has a leading position in attractive markets.
• First Hawaiian has an experienced leadership team.
• The company has a high-quality balance sheet.
• First Hawaiian has proven performance through the cycle.
• The company is well-capitalized with an attractive dividend.
• First Hawaiian has a solid, low-cost core deposit base.
• The company has a high-quality, balanced loan portfolio.
• First Hawaiian has proven, consistent, and conservative credit risk management.

Risks

• The presentation contains forward-looking statements that are subject to risks, assumptions, estimates, and uncertainties.
• Actual results may differ materially from those expressed or implied by the forward-looking statements due to various factors, including the domestic and global economic environment and capital market conditions.

Future Outlook

The presentation includes forward-looking statements regarding future events and financial performance, but the company does not undertake any obligation to update or review these statements except as required by applicable law.

Industry Context

The presentation highlights that the Hawaii banking market is dominated by local banks, with the top 4 banks accounting for approximately 93% of deposits.

Comparison to Industry Standards

• First Hawaiian's ROATCE of 14.7% is compared to a peer median of 10.2% for U.S. banks with $10-$50 billion in assets.
• First Hawaiian's ROATA of 1.0% is compared to a peer median of 0.9% for U.S. banks with $10-$50 billion in assets.
• First Hawaiian's dividend yield of 3.7% is compared to a peer median of 2.8% for U.S. banks with $10-$50 billion in assets.
• First Hawaiian's cost of deposits of 165 bps is compared to a peer median of 228 bps for U.S. banks with $10-$50 billion in assets.
• Hawaii banks experienced a deposit beta of ~36% vs. ~45% for broader U.S. banks during the last rising rate cycle.

Stakeholder Impact

• Shareholders may benefit from the company's strong financial performance, attractive dividend yield, and share repurchase program.
• Customers benefit from the company's full suite of products and services and its focus on building relationships.
• Employees benefit from working for a stable and successful company with an experienced leadership team.
• The company's strong financial position and commitment to the community benefit the local economy in Hawaii, Guam, and Saipan.

Next Steps

• The company intends to use the investor presentation for investor meetings and related interactions in 2025.
• The presentation will be posted on the company's website in the Investor Relations section.

Key Dates