GICS Sector : Financial Services
First Hawaiian, Inc.operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States.It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other.
First Hawaiian's net income increased in the third quarter, driven by higher net interest and noninterest income. Net interest income was $169.3 million, $5.7 million higher than the prior quarter, driven by higher asset yields and nonrecurring items. The net interest margin (NIM) was 3.19%, up 8 basis points from the prior quarter. Earnings per share (EPS) came in at $0.59, beating estimates of $0.52. Revenue growth is expected to be 2.0% next year, according to analyst estimates.
Publication Date: Oct -27
The bank's balance sheet remains solid, with a well-capitalized and liquid position. Loans declined by $223 million, primarily in C&I, while average deposits increased. Total deposits increased by $500 million in the third quarter, driven by a $135 million increase in commercial deposits. The bank repaid a $250 million FHLB advance and repurchased 965,000 shares at a total cost of $24 million.
The bank maintained its strong credit performance and healthy credit metrics in the third quarter. Credit risk remains low, stable, and well within expectations. Classified assets increased $30.1 million due to a single borrower, but the bank has a strong credit profile and is not observing any broad signs of weakness. As Bob Harrison noted, "the pipeline is strong, with a focus on CRE and C&I."
With a Price-to-Tangible Book Value (P/TBV) ratio not directly available, we can look at the Price-to-Book Ratio (P/B Ratio) which is 1.13. The Dividend Yield is 4.2%, indicating a relatively attractive yield for income-seeking investors. The bank's capital priorities remain the same, with a focus on lending and a share buyback authority of $100 million.
The bank expects positive NIM momentum in the fourth quarter, with the margin advancing a few basis points from the September NIM. Noninterest income is expected to normalize to around $54 million per quarter. The bank is considering pool purchases, but only in areas where it has expertise. With a strong credit profile and a well-capitalized position, the bank is well-positioned for growth.
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Nov -19
World Investment Advisors Makes New Investment in First Hawaiian, Inc. $FHB
Nov -04
D.A. Davidson & CO. Raises Holdings in First Hawaiian, Inc. $FHB
Oct -31
Ethic Inc. Reduces Stock Holdings in First Hawaiian, Inc. $FHB
Oct -31
First Hawaiian: Decent Bank In A Challenging Market
Oct -29
Mutual of America Capital Management LLC Sells 2,260 Shares of First Hawaiian, Inc. $FHB
Oct -29
First Hawaiian, Inc.'s Retail Banking segment growth is driven by a strong Hawaiian economy, increasing consumer spending, and a growing population. The bank's strategic expansion into new markets, investments in digital banking, and focus on customer experience also contribute to its growth. Additionally, the bank's efforts to increase mortgage lending and deposit growth further support its growth momentum.
Strong loan growth driven by Hawaii's economic expansion, increased commercial lending, and market share gains. Additionally, deposit growth fueled by customer relationships and competitive pricing. Fee income growth from treasury management and cash management services also contributed to the segment's growth.
Treasury and Other segment of First Hawaiian, Inc. exhibits 1% growth driven by increasing low-cost deposits, improved asset liability management, and enhanced fee income from cash management services, coupled with a stable interest rate environment and disciplined expense management.
Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.
Offers financial solutions for businesses, including cash management, commercial lending, and treasury management services.
Provides investment and wealth management services, including brokerage, trust, and insurance services.
Offers residential and commercial mortgage lending services, including purchase and refinance loans.
Issues credit cards with rewards, cashback, and low-interest rates for personal and business use.
Provides online and mobile banking services, including bill pay, fund transfers, and account management.
First Hawaiian, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.
First Hawaiian, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and customer loyalty reduce the likelihood of customers switching to competitors.
First Hawaiian, Inc. relies on a few large suppliers for its operations, which gives them some bargaining power. However, the company's strong financial position and diversified supply chain mitigate this risk.
The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This reduces the threat of new entrants and gives First Hawaiian, Inc. a competitive advantage.
The banking industry is highly competitive, with many established players competing for market share. First Hawaiian, Inc. must continually innovate and improve its services to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 28.85% |
| Debt Cost | 6.13% |
| Equity Weight | 71.15% |
| Equity Cost | 8.92% |
| WACC | 8.12% |
| Leverage | 40.55% |
Value: 6.3
Growth: 5.9
Quality: 7.0
Yield: 6.0
Momentum: 8.0
Volatility: 8.3
1-Year Total Return ->
Value: 6.1
Growth: 4.4
Quality: 6.8
Yield: 8.0
Momentum: 6.0
Volatility: 8.3
1-Year Total Return ->
Value: 5.1
Growth: 4.8
Quality: 7.8
Yield: 8.0
Momentum: 6.0
Volatility: 7.7
1-Year Total Return ->
Value: 5.8
Growth: 5.2
Quality: 6.4
Yield: 7.0
Momentum: 7.5
Volatility: 7.0
1-Year Total Return ->
Value: 5.8
Growth: 4.7
Quality: 5.8
Yield: 7.0
Momentum: 9.0
Volatility: 6.3
1-Year Total Return ->
Value: 6.9
Growth: 5.4
Quality: 7.1
Yield: 6.0
Momentum: 6.0
Volatility: 5.7
1-Year Total Return ->