HONOLULU, April 22, 2022 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today reported financial results for its quarter ended March 31, 2022.

"I'm pleased to report that we started 2022 with a strong quarter," said Bob Harrison, Chairman, President and CEO. "We had good earnings and continued consumer and commercial deposit growth, and credit quality remained excellent."

On April 20, 2022 the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 3, 2022 to stockholders of record at the close of business on May 23, 2022.

First Quarter 2022 Highlights:

Net income of $57.7 million, or $0.45 per diluted share
Total loans and leases decreased $70.3 million versus prior quarter. PPP loans decreased $110.3 million versus the prior quarter
Total deposits increased $454.3 million versus prior quarter
Recorded a $5.7 million negative provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $25.0 billion as of March 31, 2022, unchanged from December 31, 2021.

Gross loans and leases were $12.9 billion as of March 31, 2022, a decrease of $70.3 million, or 0.5%, from $13.0 billion as of December 31, 2021.

Total deposits were $22.3 billion as of March 31, 2022, an increase of $454.3 million, or 2.1%, from $21.8 billion as of December 31, 2021.

Net Interest Income

Net interest income for the first quarter of 2022 was $133.9 million, a decrease of $3.5 million, or 2.5%, compared to $137.3 million for the prior quarter.

The net interest margin (NIM) was 2.42% in the first quarter of 2022, an increase of 4 basis points compared to 2.38% in the fourth quarter of 2021.

Provision Expense

During the quarter ended March 31, 2022, we recorded a $5.7 million negative provision for credit losses. In the quarter ended December 31, 2021, we did not record a provision for credit losses.

Noninterest Income

Noninterest income was $41.4 million in the first quarter of 2022, a decrease of $0.2 million compared to noninterest income of $41.6 million in the fourth quarter of 2021.

Noninterest Expense

Noninterest expense was $104.0 million in the first quarter of 2022, a decrease of $4.7 million compared to noninterest expense of $108.7 million in the fourth quarter of 2021.

The efficiency ratio was 59.0% and 60.5% for the quarters ended March 31, 2022 and December 31, 2021, respectively.

Taxes

The effective tax rate was 25.0% for the quarter ended March 31, 2022 and 18.7% for the quarter ended December 31, 2021.

Asset Quality

The allowance for credit losses was $150.3 million, or 1.17% of total loans and leases, as of March 31, 2022, compared to $157.3 million, or 1.21% of total loans and leases, as of December 31, 2021. The reserve for unfunded commitments was $29.0 million as of March 31, 2022, compared to $30.3 million as of December 31, 2021. Net charge-offs were $2.6 million, or 0.08% of average loans and leases on an annualized basis, for the quarter ended March 31, 2022, compared to net charge-offs of $6.2 million, or 0.19% of average loans and leases on an annualized basis, for the quarter ended December 31, 2021. Total non-performing assets were $8.6 million, or 0.07% of total loans and leases and other real estate owned, at March 31, 2022, compared to total non-performing assets of $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2021.

Capital

Total stockholders' equity was $2.3 billion at March 31, 2022, compared to $2.7 billion at December 31, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.50%, 12.27% and 13.48%, respectively, at March 31, 2022, compared with 7.24%, 12.24% and 13.49%, respectively, at December 31, 2021.

The Company did not repurchase any shares in the first quarter.

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.

Conference Call Information

First Hawaiian will host a conference call to discuss the Company's results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 6391237. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on April 29, 2022. The replay can be accessed dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 6391237.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized" and "outlook", or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ("SEC") filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2021.

Use of Non-GAAP Financial Measures

Return on average tangible stockholders' equity, return on average tangible assets and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders' equity as the ratio of net income to average tangible stockholders' equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders' equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our tangible stockholders' equity to tangible assets as the ratio of tangible stockholders' equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact:

Kevin Haseyama, CFA

(808) 525-6268

khaseyama@fhb.com

Media Contact:

Lindsay Chambers

(808) 525-6254

lchambers@fhb.com


Financial Highlights	Table 1
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2022			2021			2021
Operating Results:
Net interest income	$	133,872		$	137,327		$	129,158
Provision for credit losses		(5,747	)		—			—
Noninterest income		41,380			41,573			43,868
Noninterest expense		104,042			108,749			96,306
Net income		57,719			57,022			57,693
Basic earnings per share		0.45			0.45			0.44
Diluted earnings per share		0.45			0.44			0.44
Dividends declared per share		0.26			0.26			0.26
Dividend payout ratio		57.78	%		59.09	%		59.09	%
Performance Ratios⁽¹⁾:
Net interest margin		2.42	%		2.38	%		2.55	%
Efficiency ratio		59.04	%		60.50	%		55.53	%
Return on average total assets		0.93	%		0.88	%		1.02	%
Return on average tangible assets (non-GAAP)		0.97	%		0.92	%		1.07	%
Return on average total stockholders' equity		9.19	%		8.46	%		8.58	%
Return on average tangible stockholders' equity (non-GAAP)		15.08	%		13.47	%		13.51	%
Average Balances:
Average loans and leases	$	12,819,612		$	12,814,316		$	13,242,270
Average earning assets		22,463,209			23,100,445			20,476,149
Average assets		25,080,453			25,650,505			22,944,699
Average deposits		21,960,819			22,246,577			19,503,067
Average stockholders' equity		2,547,865			2,675,513			2,727,701
Market Value Per Share:
Closing		27.89			27.33			27.37
High		31.16			30.14			30.80
Low		26.93			25.17			23.14

	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2022			2021			2021
Balance Sheet Data:
Loans and leases	$	12,891,743		$	12,961,999		$	13,300,289
Total assets		25,042,720			24,992,410			23,497,596
Total deposits		22,270,430			21,816,146			20,133,681
Long-term borrowings		—			—			200,010
Total stockholders' equity		2,285,149			2,656,912			2,683,630

Per Share of Common Stock:
Book value	$	17.90		$	20.84		$	20.68
Tangible book value (non-GAAP)⁽²⁾		10.10			13.03			13.01

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.07	%		0.05	%		0.07	%
Allowance for credit losses for loans and leases / total loans and leases		1.17	%		1.21	%		1.51	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		12.27	%		12.24	%		12.82	%
Tier 1 Capital Ratio		12.27	%		12.24	%		12.82	%
Total Capital Ratio		13.48	%		13.49	%		14.07	%
Tier 1 Leverage Ratio		7.50	%		7.24	%		7.90	%
Total stockholders' equity to total assets		9.13	%		10.63	%		11.42	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.36	%		6.92	%		7.50	%

Non-Financial Data:
Number of branches		51			54			54
Number of ATMs		298			299			297
Number of Full-Time Equivalent Employees		2,022			2,036			2,090

Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.
Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders' equity to shares outstanding. Tangible stockholders' equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders' equity. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2022			2021			2021
Interest income
Loans and lease financing	$	103,732		$	111,865		$	110,939
Available-for-sale securities		32,107			28,393			23,146
Other		782			1,051			491
Total interest income		136,621			141,309			134,576
Interest expense
Deposits		2,749			3,216			4,056
Short-term and long-term borrowings		—			766			1,362
Total interest expense		2,749			3,982			5,418
Net interest income		133,872			137,327			129,158
Provision for credit losses		(5,747	)		—			—
Net interest income after provision for credit losses		139,619			137,327			129,158
Noninterest income
Service charges on deposit accounts		7,501			7,171			6,718
Credit and debit card fees		14,850			16,266			14,551
Other service charges and fees		9,654			9,196			8,846
Trust and investment services income		8,883			8,895			8,492
Bank-owned life insurance		(417	)		2,851			2,389
Other		909			(2,806	)		2,872
Total noninterest income		41,380			41,573			43,868
Noninterest expense
Salaries and employee benefits		48,226			45,982			43,936
Contracted services and professional fees		17,147			14,603			17,188
Occupancy		7,410			8,074			7,170
Equipment		5,977			6,317			5,491
Regulatory assessment and fees		2,224			2,557			2,034
Advertising and marketing		2,028			1,579			1,591
Card rewards program		6,883			7,471			4,835
Other		14,147			22,166			14,061
Total noninterest expense		104,042			108,749			96,306
Income before provision for income taxes		76,957			70,151			76,720
Provision for income taxes		19,238			13,129			19,027
Net income	$	57,719		$	57,022		$	57,693
Basic earnings per share	$	0.45		$	0.45		$	0.44
Diluted earnings per share	$	0.45		$	0.44		$	0.44
Basic weighted-average outstanding shares		127,556,242			127,893,011			129,933,104
Diluted weighted-average outstanding shares		128,121,126			128,512,257			130,589,878


Consolidated Balance Sheets	Table 3
	March 31,			December 31,			March 31,
(dollars in thousands)	2022			2021			2021
Assets
Cash and due from banks	$	274,022		$	246,716		$	278,994
Interest-bearing deposits in other banks		1,352,138			1,011,753			983,816
Investment securities, at fair value (amortized cost: $8,733,170 as of March 31, 2022, $8,560,733 as of December 31, 2021 and $6,708,431 as of March 31, 2021)		8,062,384			8,428,032			6,692,479
Loans held for sale		—			538			9,390
Loans and leases		12,891,743			12,961,999			13,300,289
Less: allowance for credit losses		150,280			157,262			200,366
Net loans and leases		12,741,463			12,804,737			13,099,923

Premises and equipment, net		315,766			318,448			319,949
Other real estate owned and repossessed personal property		—			175			—
Accrued interest receivable		61,561			63,158			69,879
Bank-owned life insurance		471,401			471,819			468,927
Goodwill		995,492			995,492			995,492
Mortgage servicing rights		7,650			8,302			10,869
Other assets		760,843			643,240			567,878
Total assets	$	25,042,720		$	24,992,410		$	23,497,596
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	12,504,821		$	12,422,283		$	11,958,606
Noninterest-bearing		9,765,609			9,393,863			8,175,075
Total deposits		22,270,430			21,816,146			20,133,681
Long-term borrowings		—			—			200,010
Retirement benefits payable		134,323			134,491			143,736
Other liabilities		352,818			384,861			336,539
Total liabilities		22,757,571			22,335,498			20,813,966

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022, issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021 and issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021)		1,409			1,406			1,405
Additional paid-in capital		2,530,795			2,527,663			2,517,048
Retained earnings		628,642			604,534			497,418
Accumulated other comprehensive loss, net		(517,502	)		(121,693	)		(43,435	)
Treasury stock (13,189,288 shares as of March 31, 2022, 13,079,243 shares as of December 31, 2021 and 10,705,290 shares as of March 31, 2021)		(358,195	)		(354,998	)		(288,806	)
Total stockholders' equity		2,285,149			2,656,912			2,683,630
Total liabilities and stockholders' equity	$	25,042,720		$	24,992,410		$	23,497,596


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,138.3	$	0.6	0.20	%	$	2,074.5	$	0.8	0.15	%	$	938.7	$	0.2	0.10	%
Available-for-Sale Investment Securities
Taxable		7,800.3		29.2	1.50			7,515.2		25.8	1.37			5,949.9		22.1	1.49
Non-Taxable		636.7		3.6	2.32			615.3		3.3	2.14			278.0		1.3	1.80
Total Available-for-Sale Investment Securities		8,437.0		32.8	1.56			8,130.5		29.1	1.43			6,227.9		23.4	1.50
Loans Held for Sale		1.2		—	2.02			1.0		—	1.35			9.2		0.1	2.46
Loans and Leases⁽¹⁾
Commercial and industrial		1,973.1		14.6	3.01			2,084.0		21.1	4.01			3,026.7		20.4	2.74
Commercial real estate		3,632.2		25.8	2.88			3,572.9		26.0	2.89			3,385.2		24.9	2.98
Construction		766.9		5.7	3.03			806.6		6.3	3.09			746.8		5.8	3.16
Residential:
Residential mortgage		4,111.0		34.8	3.38			4,014.9		34.9	3.48			3,696.1		34.7	3.76
Home equity line		891.6		5.5	2.48			864.4		5.5	2.52			822.0		5.7	2.80
Consumer		1,218.6		15.6	5.19			1,241.3		16.3	5.22			1,323.7		17.7	5.43
Lease financing		226.2		1.9	3.42			230.2		1.9	3.27			241.8		1.8	3.02
Total Loans and Leases		12,819.6		103.9	3.27			12,814.3		112.0	3.48			13,242.3		111.0	3.39
Other Earning Assets		67.1		0.2	1.31			80.1		0.3	1.27			58.0		0.3	1.79
Total Earning Assets⁽²⁾		22,463.2		137.5	2.47			23,100.4		142.2	2.45			20,476.1		135.0	2.66
Cash and Due from Banks		292.1						282.2						294.0
Other Assets		2,325.2						2,267.9						2,174.6
Total Assets	$	25,080.5					$	25,650.5					$	22,944.7

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,668.4	$	0.5	0.03	%	$	7,086.0	$	0.8	0.04	%		5,975.1	$	0.6	0.04	%
Money Market		4,048.9		0.5	0.05			4,048.3		0.5	0.05			3,530.0		0.4	0.05
Time		1,748.5		1.7	0.39			1,819.0		1.9	0.42			2,288.5		3.0	0.53
Total Interest-Bearing Deposits		12,465.8		2.7	0.09			12,953.3		3.2	0.10			11,793.6		4.0	0.14
Long-Term Borrowings		—		—	—			110.9		0.8	2.74			200.0		1.4	2.76
Total Interest-Bearing Liabilities		12,465.8		2.7	0.09			13,064.2		4.0	0.12			11,993.6		5.4	0.18
Net Interest Income			$	134.8					$	138.2					$	129.6
Interest Rate Spread					2.38	%					2.33	%					2.48	%
Net Interest Margin					2.42	%					2.38	%					2.55	%
Noninterest-Bearing Demand Deposits		9,495.0						9,293.3						7,709.5
Other Liabilities		571.8						617.5						513.9
Stockholders' Equity		2,547.9						2,675.5						2,727.7
Total Liabilities and Stockholders' Equity	$	25,080.5					$	25,650.5					$	22,944.7

Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
Interest income includes taxable-equivalent basis adjustments of $1.0 million, $0.9 million and $0.4 million for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Analysis of Change in Net Interest Income

Table 5

Three Months Ended March 31, 2022

Compared to December 31, 2021

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

(0.4

)

0.2

(0.2

)

Available-for-Sale Investment Securities

Taxable

1.0

2.4

3.4

Non-Taxable

—

0.3

Total Available-for-Sale Investment Securities

1.0

2.7

3.7

Loans and Leases

Commercial and industrial

(1.2

)

(5.3

)

(6.5

)

Commercial real estate

—

(0.2

)

(0.2

)

Construction

(0.4

)

(0.2

)

(0.6

)

Residential:

Residential mortgage

0.9

(1.0

)

(0.1

)

Home equity line

0.1

(0.1

)

—

Consumer

(0.5

)

(0.2

)

(0.7

)

Lease financing

(0.1

)

0.1

—

Total Loans and Leases

(1.2

)

(6.9

)

(8.1

)

Other Earning Assets

(0.1

)

—

(0.1

)

Total Change in Interest Income

(0.7

)

(4.0

)

(4.7

)

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(0.1

)

(0.2

)

(0.3

)

Time

(0.1

)

(0.1

)

(0.2

)

Total Interest-Bearing Deposits

(0.2

)

(0.3

)

(0.5

)

Long-Term Borrowings

(0.4

)

(0.4

)

(0.8

)

Total Change in Interest Expense

(0.6

)

(0.7

)

(1.3

)

Change in Net Interest Income

(0.1

)

(3.3

)

(3.4

)

Analysis of Change in Net Interest Income

Table 6

Three Months Ended March 31, 2022

Compared to March 31, 2021

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

0.1

0.3

0.4

Available-for-Sale Investment Securities

Taxable

6.9

0.2

7.1

Non-Taxable

1.9

0.4

2.3

Total Available-for-Sale Investment Securities

8.8

0.6

9.4

Loans Held for Sale

(0.1

)

—

(0.1

)

Loans and Leases

Commercial and industrial

(7.7

)

1.9

(5.8

)

Commercial real estate

1.8

(0.9

)

0.9

Construction

0.1

(0.2

)

(0.1

)

Residential:

Residential mortgage

3.8

(3.7

)

0.1

Home equity line

0.5

(0.7

)

(0.2

)

Consumer

(1.4

)

(0.7

)

(2.1

)

Lease financing

(0.1

)

0.2

0.1

Total Loans and Leases

(3.0

)

(4.1

)

(7.1

)

Other Earning Assets

—

(0.1

)

(0.1

)

Total Change in Interest Income

5.8

(3.3

)

2.5

Change in Interest Expense:

Interest-Bearing Deposits

Savings

—

(0.1

)

(0.1

)

Money Market

0.1

—

0.1

Time

(0.6

)

(0.7

)

(1.3

)

Total Interest-Bearing Deposits

(0.5

)

(0.8

)

(1.3

)

Long-Term Borrowings

(0.7

)

(0.7

)

(1.4

)

Total Change in Interest Expense

(1.2

)

(1.5

)

(2.7

)

Change in Net Interest Income

7.0

(1.8

)

5.2


Loans and Leases						Table 7
	March 31,		December 31,		March 31,
(dollars in thousands)	2022		2021		2021
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	1,817,346	$	1,870,657	$	1,962,672
Paycheck Protection Program loans		106,188		216,442		1,158,764
Total commercial and industrial		1,923,534		2,087,099		3,121,436
Commercial real estate		3,759,980		3,639,623		3,396,233
Construction		708,300		813,969		739,271
Residential:
Residential mortgage		4,153,824		4,083,367		3,715,676
Home equity line		918,101		876,608		805,746
Total residential		5,071,925		4,959,975		4,521,422
Consumer		1,204,834		1,229,939		1,283,779
Lease financing		223,170		231,394		238,148
Total loans and leases	$	12,891,743	$	12,961,999	$	13,300,289


Deposits						Table 8
	March 31,		December 31,		March 31,
(dollars in thousands)	2022		2021		2021
Demand	$	9,765,609	$	9,393,863	$	8,175,075
Savings		6,812,758		6,612,775		6,141,161
Money Market		3,990,225		4,033,070		3,642,604
Time		1,701,838		1,776,438		2,174,841
Total Deposits	$	22,270,430	$	21,816,146	$	20,133,681


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More						Table 9
	March 31,		December 31,		March 31,
(dollars in thousands)	2022		2021		2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	707	$	718	$	593
Commercial real estate		727		727		937
Construction		—		—		579
Lease financing		75		—		—
Total Commercial Loans		1,509		1,445		2,109
Residential Loans:
Residential mortgage		7,092		5,637		6,999
Total Residential Loans		7,092		5,637		6,999
Total Non-Accrual Loans and Leases		8,601		7,082		9,108
Other Real Estate Owned		—		175		—
Total Non-Performing Assets	$	8,601	$	7,257	$	9,108

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	591	$	740	$	1,365
Commercial real estate		—		—		1,054
Construction		—		—		89
Total Commercial Loans		591		740		2,508
Residential Loans:
Residential mortgage		13		987		—
Home equity line		2,252		3,681		4,975
Total Residential Loans		2,265		4,668		4,975
Consumer		1,588		1,800		2,024
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,444	$	7,208	$	9,507

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	32,590	$	34,893	$	39,831
Total Loans and Leases	$	12,891,743	$	12,961,999	$	13,300,289


Allowance for Credit Losses	Table 10
	For the Three Months Ended
	March 31,				December 31,				March 31,
(dollars in thousands)	2022				2021				2021
Balance at Beginning of Period	$	157,262			$	161,246			$	208,454
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(706	)			(4,432	)			(963	)
Commercial real estate		—				—				(66	)
Total Commercial Loans		(706	)			(4,432	)			(1,029	)
Residential Loans:
Residential mortgage		—				(534	)			(98	)
Home equity line		(43	)			(107	)			—
Total Residential Loans		(43	)			(641	)			(98	)
Consumer		(4,109	)			(3,250	)			(6,541	)
Total Loans and Leases Charged-Off		(4,858	)			(8,323	)			(7,668	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		53				244				215
Commercial real estate		14				9				3
Construction		—				100				166
Total Commercial Loans		67				353				384
Residential Loans:
Residential mortgage		16				15				17
Home equity line		28				28				24
Total Residential Loans		44				43				41
Consumer		2,148				1,743				2,655
Total Recoveries on Loans and Leases Previously Charged-Off		2,259				2,139				3,080
Net Loans and Leases Charged-Off		(2,599	)			(6,184	)			(4,588	)
Provision for Credit Losses - Loans and Leases		(4,383	)			2,200				(3,500	)
Balance at End of Period	$	150,280			$	157,262			$	200,366
Average Loans and Leases Outstanding	$	12,819,612			$	12,814,316			$	13,242,270
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.08		%		0.19		%		0.14		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.17		%		1.21		%		1.51		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		17.47x				22.21x				22.00x

Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 11

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2022

2021

2020

2019

2018

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

158,853

483,473

98,061

184,897

79,810

166,075

594,007

31,048

1,796,224

Special Mention

2,876

356

3,898

3,983

5,594

1,601

867

19,227

Substandard

—

337

1,296

1,776

13,251

757

15,877

138

33,432

Other ⁽¹⁾

4,028

10,510

6,171

6,450

3,516

1,664

42,312

—

74,651

Total Commercial and Industrial

165,757

494,676

109,426

197,106

96,629

174,090

653,797

32,053

1,923,534

Commercial Real Estate

Risk rating:

Pass

240,807

682,346

351,893

523,735

471,899

1,291,495

77,724

14,752

3,654,651

Special Mention

—

47,897

473

39,064

696

—

88,130

Substandard

—

1,757

15,280

—

17,041

Other ⁽¹⁾

—

158

—

158

Total Commercial Real Estate

240,807

682,346

351,893

571,632

474,129

1,345,997

78,424

14,752

3,759,980

Construction

Risk rating:

Pass

6,160

167,645

118,526

136,209

112,919

89,172

19,470

—

650,101

Special Mention

—

244

705

353

—

1,302

Substandard

—

357

827

—

1,184

Other ⁽¹⁾

7,871

29,932

5,774

2,957

3,922

4,435

822

—

55,713

Total Construction

14,031

197,577

124,300

139,410

117,903

94,787

20,292

—

708,300

Lease Financing

Risk rating:

Pass

3,913

31,974

57,192

45,698

8,813

69,286

—

216,876

Special Mention

—

479

2,672

1,360

—

4,543

Substandard

—

270

123

1,343

—

1,751

Total Lease Financing

3,913

32,453

60,134

47,181

8,840

70,649

—

223,170

Total Commercial Lending

424,508

1,407,052

645,753

955,329

697,501

1,685,523

752,513

46,805

6,614,984

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

(continued)

Amortized

(dollars in thousands)

2022

2021

2020

2019

2018

Prior

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

185,434

1,096,789

615,500

264,419

183,368

1,012,447

—

3,357,957

680 - 739

26,812

128,172

72,766

44,872

25,913

159,950

—

458,485

620 - 679

3,088

13,196

12,304

5,995

5,021

39,145

—

78,749

550 - 619

—

2,267

1,570

720

731

8,847

—

14,135

Less than 550

2,116

228

—

4,098

—

6,584

No Score ⁽³⁾

6,550

15,806

7,676

13,968

17,545

56,444

—

117,989

Other ⁽²⁾

18,485

30,872

16,042

9,704

10,810

32,600

1,369

119,925

Total Residential Mortgage

242,485

1,287,330

725,918

339,678

243,470

1,313,531

1,369

4,153,824

Home Equity Line

FICO:

740 and greater

—

705,570

1,892

707,462

680 - 739

—

147,290

3,202

150,492

620 - 679

—

39,370

2,129

41,499

550 - 619

—

10,310

1,426

11,736

Less than 550

—

1,482

494

1,976

No Score ⁽³⁾

—

4,936

—

4,936

Total Home Equity Line

—

908,958

9,143

918,101

Total Residential Lending

242,485

1,287,330

725,918

339,678

243,470

1,313,531

909,001

10,512

5,071,925

Consumer Lending

FICO:

740 and greater

60,821

145,550

74,436

68,970

46,731

24,261

112,298

217

533,284

680 - 739

26,319

87,933

50,976

48,120

28,498

18,340

68,407

647

329,240

620 - 679

6,222

39,016

19,677

25,307

16,453

14,473

30,462

1,038

152,648

550 - 619

292

7,159

7,314

11,776

8,904

8,485

10,352

1,129

55,411

Less than 550

2,003

3,445

5,732

2,939

3,089

3,166

471

20,898

No Score ⁽³⁾

280

458

35,063

337

36,287

Other ⁽²⁾

502

4,247

363

1,691

2,181

68,078

—

77,066

Total Consumer Lending

94,489

286,366

156,220

161,649

103,564

70,881

327,826

3,839

1,204,834

Total Loans and Leases

761,482

2,980,748

1,527,891

1,456,656

1,044,535

3,069,935

1,989,340

61,156

12,891,743

Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a "Pass" rating.
No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation	Table 12
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2022			2021			2021
Income Statement Data:
Net income	$	57,719		$	57,022		$	57,693

Average total stockholders' equity	$	2,547,865		$	2,675,513		$	2,727,701
Less: average goodwill		995,492			995,492			995,492
Average tangible stockholders' equity	$	1,552,373		$	1,680,021		$	1,732,209

Average total assets	$	25,080,453		$	25,650,505		$	22,944,699
Less: average goodwill		995,492			995,492			995,492
Average tangible assets	$	24,084,961		$	24,655,013		$	21,949,207

Return on average total stockholders' equity⁽¹⁾		9.19	%		8.46	%		8.58	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		15.08	%		13.47	%		13.51	%

Return on average total assets⁽¹⁾		0.93	%		0.88	%		1.02	%
Return on average tangible assets (non-GAAP)⁽¹⁾		0.97	%		0.92	%		1.07	%


	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2022			2021			2021
Balance Sheet Data:
Total stockholders' equity	$	2,285,149		$	2,656,912		$	2,683,630
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,289,657		$	1,661,420		$	1,688,138

Total assets	$	25,042,720		$	24,992,410		$	23,497,596
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	24,047,228		$	23,996,918		$	22,502,104

Shares outstanding		127,686,307			127,502,472			129,749,890

Total stockholders' equity to total assets		9.13	%		10.63	%		11.42	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.36	%		6.92	%		7.50	%

Book value per share	$	17.90		$	20.84		$	20.68
Tangible book value per share (non-GAAP)	$	10.10		$	13.03		$	13.01

Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.

First Hawaiian, Inc. Reports First Quarter 2022 Financial Results and Declares Dividend