First Hawaiian Reports 9% Increase in Net Income to $59.2 Million for Q1 2025

First Hawaiian, Inc. reported a net income of $59.2 million for the first quarter of 2025, reflecting a 9% increase from $54.2 million in the same period of 2024. This growth translated to basic and diluted earnings per share of $0.47, up from $0.42 a year earlier. The increase in net income was primarily driven by a $6.1 million rise in net interest income, which reached $160.5 million, and a $5.3 million reduction in noninterest expenses. However, these gains were partially offset by a $4.2 million increase in the provision for credit losses, a $1.2 million rise in income tax provisions, and a $0.9 million decline in noninterest income.

The company's total assets decreased slightly to $23.7 billion as of March 31, 2025, down from $23.8 billion at the end of 2024. Total loans and leases also saw a nominal decline of 1%, amounting to $14.3 billion, primarily due to reductions in commercial real estate and residential loans. The allowance for credit losses increased to $166.6 million, representing 1.17% of total loans and leases, compared to 1.11% at the end of the previous year. The company maintained a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 12.93%, up from 12.80% at year-end 2024.

In terms of strategic developments, First Hawaiian announced a stock repurchase program in January 2025, authorizing up to $100 million in buybacks. By the end of March, the company had repurchased 974,345 shares for approximately $25 million. Additionally, the Board of Directors declared a quarterly cash dividend of $0.26 per share, to be paid on May 30, 2025. The company’s investment portfolio, primarily composed of high-grade securities, totaled $5.6 billion, with a focus on collateralized mortgage obligations and mortgage-backed securities.

Operationally, First Hawaiian's retail banking segment generated a net income of $59.9 million, a 7% increase from the previous year, while the commercial banking segment reported a net income of $28.3 million, up 6%. The Treasury and Other segment, however, recorded a net loss of $29 million, slightly higher than the previous year's loss. The company continues to monitor its credit quality, with non-accrual loans remaining stable at 0.14% of total loans and leases. Looking ahead, First Hawaiian remains focused on maintaining its liquidity and capital adequacy while navigating the challenges posed by the current economic environment.