Loan growth slowed to 0.5% in Q2, while NIM held at 2.91%. Net income fell to $60.1M as expenses rose. The bank's CET1 ratio slipped to 12.1%.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
First Hawaiian (FHB) reported second-quarter earnings Thursday, with net interest income of $147.2 million and a net interest margin of 2.91%, flat from the prior quarter. The bank posted net income of $60.1 million, down from $63.4 million in Q1, as loan growth slowed to 0.5% quarter over quarter.
Total loans reached $12.5 billion, with commercial and industrial lending up 1.1% and consumer loans rising 0.7%. The bank's deposit base grew 0.3% to $21.8 billion, with non-interest-bearing deposits accounting for 22.5% of the total, down from 23.1% in the first quarter.
The provision for credit losses came in at $6.5 million, compared with $5.8 million in the prior quarter. Net charge-offs totaled $4.2 million, or 0.14% of average loans, up from $3.9 million in Q1. The allowance for credit losses stood at 1.18% of total loans.
Non-interest income fell 2.5% to $56.8 million, driven by lower service charges and trust fees. Expenses rose 1.8% to $124.5 million, with salary and benefits up 2.2%. The efficiency ratio ticked higher to 61.3% from 60.8% in Q1.
First Hawaiian's common equity Tier 1 ratio was 12.1%, down 10 basis points from the prior quarter. The bank declared a dividend of $0.26 per share, payable Aug. 14 to shareholders of record Aug. 3.
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