The following is a summary of the First Hawaiian, Inc. (FHB) Q2 2024 Earnings Call Transcript:

Financial Performance:

• First Hawaiian reported Q2 2024 loan production driven by construction loans and new leasing opportunities, with slight consumer loan balance declines due to the indirect auto portfolio runoff.

• Loan growth outlook for the year remains at low-single-digit, with expectations for more robust activity in H2, particularly Q4.

• Net interest income slightly declined by $1.6 million compared to the previous quarter, totaling $152.9 million, influenced by lower average balances of cash and investment securities.

• Decrease in total deposits by $351 million was noted, primarily driven by a $216 million reduction in total public deposits.

• Noninterest income slightly increased by about $400,000 compared to the previous quarter, reaching $51.8 million.

Business Progress:

• The company focused on rotating funds from run-off investment portfolios to fund loan growth and reduce high-cost deposits.

• An emphasis on maintaining a well-capitalized status and solid liquidity was mentioned, alongside a healthy deposit mix for future stability.

Opportunities:

• Anticipation of stable or increasing net interest margin (NIM) even amidst potential interest rate cuts due to prudent asset and liability management.

Risks:

• Visibility on the scale of potential indirect auto loan runoff remains uncertain, affecting precise forecasting of financial outcomes.

More details: First Hawaiian IR

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