First Hawaiian, Inc. Completes Investment Portfolio Restructuring

HONOLULU, Dec. 09, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today announced the completion of a restructuring related to its available-for-sale investment securities portfolio.

The Company executed the sale of $293 million of its lower-yielding available-for-sale debt securities for an estimated after-tax loss of $19.7 million. Proceeds from the sale were reinvested in $293 million of debt securities currently yielding 309 basis points more than the securities that were sold. The transaction is projected to increase net interest income by approximately $8.6 million and net interest margin by approximately 4 basis points in 2025. The transaction is projected to increase net interest income by approximately $0.5 million and net interest margin by approximately 1 basis point in the fourth quarter of 2024.

The securities sold had a weighted average yield of 1.92% and a weighted average duration of 3.2 years. The proceeds were reinvested into securities with a weighted average yield of 5.01%, with a weighted average duration of 4.1 years. The Company recognized a one-time pre-tax loss of $26.2 million as a result of the transaction, which will be recognized in the quarter ending December 31, 2024. The breakeven on this transaction is estimated to be 3 years.

This restructuring had no impact on tangible equity, and the Company remains "well capitalized" under applicable regulatory guidelines.

First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

Forward-Looking Statements
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