UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to               

Commission File Number  001-14585

FIRST HAWAIIAN, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	99-0156159
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

999 Bishop Street, 29th Floor Honolulu, HI	96813
(Address of Principal Executive Offices)	(Zip Code)

(808) 525-7000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, par value $0.01 per share	FHB	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 127,886,167 shares of Common Stock, par value $0.01 per share, were outstanding as of July 31, 2024.

TABLE OF CONTENTS

FIRST HAWAIIAN, INC.

FORM 10-Q

INDEX

Part I Financial Information			Page No.
	Item 1.	Financial Statements (unaudited)		2
		Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023		2
		Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023		3
		Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023		4
		Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023		5
		Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023		7
		Notes to Consolidated Financial Statements (unaudited)		8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		52
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk		92
	Item 4.	Controls and Procedures		92
Part II Other Information				92
	Item 1.	Legal Proceedings		92
	Item 1A.	Risk Factors		92
	Item 5.	Other Information		92
	Item 6.	Exhibits		93
	Exhibit Index			93
	Signatures			94

1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FIRST HAWAIIAN, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in thousands, except per share amounts)	2024		2023		2024		2023
Interest income
Loans and lease financing	$	202,068	$	185,340	$	401,912	$	357,679
Available-for-sale investment securities		14,143		18,094		28,689		36,782
Held-to-maturity investment securities		17,575		18,282		35,368		37,239
Other		11,148		7,489		23,917		11,050
Total interest income		244,934		229,205		489,886		442,750
Interest expense
Deposits		85,609		58,071		169,752		101,355
Short-term and long-term borrowings		5,953		10,656		11,906		13,219
Other		521		539		950		990
Total interest expense		92,083		69,266		182,608		115,564
Net interest income		152,851		159,939		307,278		327,186
Provision for credit losses		1,800		5,000		8,100		13,800
Net interest income after provision for credit losses		151,051		154,939		299,178		313,386
Noninterest income
Service charges on deposit accounts		7,793		7,246		15,339		14,477
Credit and debit card fees		15,861		15,461		32,034		31,759
Other service charges and fees		11,036		9,056		20,940		18,218
Trust and investment services income		9,426		9,448		19,780		19,062
Bank-owned life insurance		3,360		3,271		7,646		8,391
Other		4,292		2,866		7,400		4,464
Total noninterest income		51,768		47,348		103,139		96,371
Noninterest expense
Salaries and employee benefits		57,737		57,904		116,999		113,936
Contracted services and professional fees		16,067		17,498		31,806		33,811
Occupancy		7,377		7,554		14,318		15,336
Equipment		13,196		11,000		26,609		20,736
Regulatory assessment and fees		3,814		3,676		11,934		7,512
Advertising and marketing		1,765		1,891		4,377		3,885
Card rewards program		8,719		7,681		17,227		15,766
Other		13,411		13,677		27,629		28,466
Total noninterest expense		122,086		120,881		250,899		239,448
Income before provision for income taxes		80,733		81,406		151,418		170,309
Provision for income taxes		18,812		18,964		35,277		41,049
Net income	$	61,921	$	62,442	$	116,141	$	129,260
Basic earnings per share	$	0.48	$	0.49	$	0.91	$	1.01
Diluted earnings per share	$	0.48	$	0.49	$	0.91	$	1.01
Basic weighted-average outstanding shares		127,867,853		127,591,371		127,787,663		127,522,975
Diluted weighted-average outstanding shares		128,262,594		127,832,351		128,279,917		127,901,225

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

2

FIRST HAWAIIAN, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollars in thousands)	2024		2023		2024		2023
Net income	$	61,921	$	62,442	$	116,141	$	129,260
Other comprehensive income (loss), net of tax:
Net change in investment securities		4,684		(705)		10,351		26,239
Net change in cash flow derivative hedges		(36)		(352)		727		279
Other comprehensive income (loss)		4,648		(1,057)		11,078		26,518
Total comprehensive income	$	66,569	$	61,385	$	127,219	$	155,778

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

3

FIRST HAWAIIAN, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,		December 31,
(dollars in thousands, except share amount)	2024		2023
Assets
Cash and due from banks	$	290,501	$	185,015
Interest-bearing deposits in other banks		824,258		1,554,882
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,379,004 as of June 30, 2024 and $2,558,675 as of December 31, 2023)		2,067,956		2,255,336
Held-to-maturity, at amortized cost (fair value: $3,401,006 as of June 30, 2024 and $3,574,856 as of December 31, 2023)		3,917,175		4,041,449
Loans held for sale		2,820		190
Loans and leases		14,359,899		14,353,497
Less: allowance for credit losses		160,517		156,533
Net loans and leases		14,199,382		14,196,964
Premises and equipment, net		283,762		281,461
Accrued interest receivable		82,512		84,417
Bank-owned life insurance		486,261		479,907
Goodwill		995,492		995,492
Mortgage servicing rights		5,395		5,699
Other assets		836,277		845,662
Total assets	$	23,991,791	$	24,926,474
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,461,365	$	13,749,095
Noninterest-bearing		6,857,467		7,583,562
Total deposits		20,318,832		21,332,657
Short-term borrowings		500,000		500,000
Retirement benefits payable		101,304		103,285
Other liabilities		521,343		504,466
Total liabilities		21,441,479		22,440,408
Commitments and contingent liabilities (Note 12)
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,728,446 / 127,879,012 as of June 30, 2024; issued/outstanding: 141,340,539 / 127,618,761 as of December 31, 2023)		1,417		1,413
Additional paid-in capital		2,554,795		2,548,250
Retained earnings		887,176		837,859
Accumulated other comprehensive loss, net		(519,132)		(530,210)
Treasury stock (13,849,434 shares as of June 30, 2024 and 13,721,778 shares as of December 31, 2023)		(373,944)		(371,246)
Total stockholders' equity		2,550,312		2,486,066
Total liabilities and stockholders' equity	$	23,991,791	$	24,926,474

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

4

FIRST HAWAIIAN, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

	Three Months Ended June 30, 2024
								Accumulated
				Additional				Other
	Common Stock			Paid-In		Retained		Comprehensive		Treasury
(dollars in thousands, except share amounts)	Shares	Amount		Capital		Earnings		Income (Loss)		Stock		Total
Balance as of March 31, 2024	127,841,908	$	1,417	$	2,551,488	$	858,494	$	(523,780)	$	(373,858)	$	2,513,761
Net income	—		—		—		61,921		—		—		61,921
Cash dividends declared ($0.26 per share)	—		—		—		(33,220)		—		—		(33,220)
Equity-based awards	37,104		—		3,307		(19)		—		(86)		3,202
Other comprehensive income, net of tax	—		—