First Hawaiian Bank Thrives in Q1 2025 Despite Global Uncertainty

First Hawaiian Bank has reported strong financial results for the first quarter of 2025, defying the increasing uncertainty surrounding the global economy. In a conference call held earlier today, the company's Chief Financial Officer, Jamie Moses, presented a slide presentation that outlined the bank's performance during the quarter.

The local Hawaii economy remains stable, with the statewide seasonally adjusted unemployment rate remaining at 3% in February, compared to the national rate of 4.1%. Additionally, total visitor arrivals were up 1%, and spending was up 4.5% compared to 2024 levels, with Maui experiencing the largest increases.

First Hawaiian Bank's own performance has been equally impressive. The company reported a net interest income increase versus the prior quarter, with noninterest income remaining stable and expenses well controlled. A 5 basis point increase in Net Interest Margin (NIM) was achieved, thanks to declining deposit costs in the fourth quarter and investment portfolio restructuring.

Bob Harrison, Chairman, President and CEO of First Hawaiian Bank, noted that the balance sheet remains solid, with ample liquidity and a strong capital position. The company has also been actively repurchasing shares, with around 974,000 shares bought back at a total cost of $25 million during the quarter.

However, it was not all smooth sailing for First Hawaiian Bank. Total loans declined by $115 million or 0.8% from the prior quarter, primarily due to commercial real estate loans experiencing both scheduled and early payoffs, as well as a few large credits. Growth within the Commercial and Industrial (C&I) portfolio was partially offset by fluctuations in dealer flooring.

Despite this decline, Lea Nakamura, Chief Risk Officer at First Hawaiian Bank, reported that credit quality remains excellent, with low, stable, and healthy credit metrics across both consumer and commercial books. No signs of weakness were observed in either the consumer or commercial portfolios.

In conclusion, First Hawaiian Bank has demonstrated its resilience and ability to perform well even in uncertain times. As Jamie Moses noted, the underlying balance sheet dynamics driving Net Interest Income remain intact, and the company anticipates a few basis points increase in NIM for the second quarter.