First Hawaiian, Inc. Completes Investment Portfolio Restructuring
First Hawaiian (NASDAQ:FHB) has completed a restructuring of its available-for-sale investment securities portfolio. The company sold $293 million of lower-yielding debt securities, resulting in an after-tax loss of $19.7 million. The proceeds were reinvested in new debt securities yielding 309 basis points higher than the sold securities.
The transaction is expected to increase net interest income by $8.6 million and net interest margin by 4 basis points in 2025, with smaller gains of $0.5 million and 1 basis point respectively in Q4 2024. The sold securities had a 1.92% weighted average yield and 3.2 years duration, while the new securities offer 5.01% yield with 4.1 years duration. The restructuring resulted in a one-time pre-tax loss of $26.2 million in Q4 2024, with an estimated 3-year breakeven period.
First Hawaiian (NASDAQ:FHB) ha completato una ristrutturazione del suo portafoglio di titoli di investimento disponibili per la vendita. L'azienda ha venduto titoli obbligazionari a basso rendimento per un valore di 293 milioni di dollari, registrando una perdita dopo le tasse di 19,7 milioni di dollari. I proventi sono stati reinvestiti in nuovi titoli di debito che offrono un rendimento superiore di 309 punti base rispetto ai titoli venduti.
Si prevede che l'operazione aumenti il reddito netto da interessi di 8,6 milioni di dollari e il margine netto da interessi di 4 punti base nel 2025, con guadagni più contenuti di 0,5 milioni di dollari e 1 punto base rispettivamente nel Q4 2024. I titoli venduti avevano un rendimento medio ponderato dell'1,92% e una durata di 3,2 anni, mentre i nuovi titoli offrono un rendimento del 5,01% con una durata di 4,1 anni. La ristrutturazione ha comportato una perdita una tantum ante imposte di 26,2 milioni di dollari nel Q4 2024, con un periodo di pareggio stimato di 3 anni.
First Hawaiian (NASDAQ:FHB) ha completado una reestructuración de su cartera de valores de inversión disponibles para la venta. La compañía vendió 293 millones de dólares en valores de deuda de bajo rendimiento, resultando en una pérdida después de impuestos de 19.7 millones de dólares. Los ingresos se reinvirtieron en nuevos valores de deuda con un rendimiento 309 puntos básicos superior al de los valores vendidos.
Se espera que la transacción aumente los ingresos netos por intereses en 8.6 millones de dólares y el margen neto por intereses en 4 puntos básicos en 2025, con ganancias menores de 0.5 millones de dólares y 1 punto básico respectivamente en el Q4 2024. Los valores vendidos tenían un rendimiento promedio ponderado del 1.92% y una duración de 3.2 años, mientras que los nuevos valores ofrecen un rendimiento del 5.01% con una duración de 4.1 años. La reestructuración resultó en una pérdida única antes de impuestos de 26.2 millones de dólares en el Q4 2024, con un período de equilibrio estimado de 3 años.
퍼스트 하와이 (NASDAQ:FHB)는 판매 가능 투자 증권 포트폴리오의 리스크 구조 조정을 완료했습니다. 이 회사는 수익률이 낮은 채권을 2억 9천 3백만 달러에 매각하여 세후 1천 9백 7십만 달러의 손실을 기록했습니다. 이 수익금은 매각된 증권보다 309 베이시스 포인트 더 높은 수익률을 제공하는 새로운 채권에 재투자되었습니다.
이 거래는 2025년까지 순이자 수익을 860만 달러, 순이자 마진을 4 베이시스 포인트 증가시킬 것으로 예상되며, 2024년 4분기에는 각각 50만 달러와 1 베이시스 포인트의 더 작은 이익이 발생할 것으로 보입니다. 매각된 증권은 평균 1.92%의 수익률과 3.2년의 기간을 보유하고 있으며, 새로운 증권은 5.01%의 수익률과 4.1년의 기간을 제공합니다. 이번 구조 조정으로 인해 2024년 4분기에 세전 2천 6백 2십만 달러의 일회성 손실이 발생했으며, 예상되는 손익 분기점은 3년입니다.
First Hawaiian (NASDAQ:FHB) a finalisé une restructuration de son portefeuille de valeurs mobilières disponibles à la vente. L'entreprise a vendu pour 293 millions de dollars de titres de créance à faible rendement, entraînant une perte après impôts de 19,7 millions de dollars. Les recettes ont été réinvesties dans de nouveaux titres de créance offrant un rendement supérieur de 309 points de base par rapport aux titres vendus.
La transaction devrait augmenter le revenu net d'intérêts de 8,6 millions de dollars et la marge nette d'intérêts de 4 points de base en 2025, avec des gains plus modestes de 0,5 million de dollars et 1 point de base respectivement au T4 2024. Les titres vendus avaient un rendement moyen pondéré de 1,92 % et une durée de 3,2 ans, tandis que les nouveaux titres offrent un rendement de 5,01 % avec une durée de 4,1 ans. La restructuration a entraîné une perte exceptionnelle avant impôts de 26,2 millions de dollars au T4 2024, avec un seuil de rentabilité estimé à 3 ans.
First Hawaiian (NASDAQ:FHB) hat eine Umstrukturierung seines Portfolios von zum Verkauf stehenden Wertpapieren abgeschlossen. Das Unternehmen hat Schuldtitel mit niedrigeren Erträgen im Wert von 293 Millionen Dollar verkauft, was zu einem Verlust nach Steuern von 19,7 Millionen Dollar führte. Die Erlöse wurden in neue Schuldtitel reinvestiert, die 309 Basispunkte höhere Renditen bieten als die verkauften Wertpapiere.
Von der Transaktion wird erwartet, dass sie das Nettozinseinkommen bis 2025 um 8,6 Millionen Dollar und die Nettomarge um 4 Basispunkte erhöht, mit kleineren Gewinnen von 0,5 Millionen Dollar und 1 Basispunkt im vierten Quartal 2024. Die verkauften Wertpapiere hatten eine gewichtete durchschnittliche Rendite von 1,92 % und eine Duration von 3,2 Jahren, während die neuen Wertpapiere eine Rendite von 5,01 % bei einer Duration von 4,1 Jahren bieten. Die Umstrukturierung führte im vierten Quartal 2024 zu einem einmaligen Verlust vor Steuern von 26,2 Millionen Dollar, mit einem geschätzten einfachen Break-even-Zeitraum von 3 Jahren.
- Net interest income projected to increase by $8.6 million in 2025
- Net interest margin expected to improve by 4 basis points in 2025
- New securities yield 5.01% vs. previous 1.92%, representing a 309 basis point improvement
- One-time pre-tax loss of $26.2 million in Q4 2024
- After-tax loss of $19.7 million from securities sale
- 3-year breakeven period required to recover restructuring losses
- Increased duration risk from 3.2 to 4.1 years
Insights
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
The securities sold had a weighted average yield of
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
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. 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 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, 2023 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024.
| Investor Relations Contact: Kevin Haseyama, CFA (808) 525-6268 khaseyama@fhb.com | Media Contact: Lindsay Chambers (808) 525-6254 lchambers@fhb.com |
FAQ
What is the expected net interest income increase for First Hawaiian (FHB) in 2025 from the portfolio restructuring?
How much did First Hawaiian (FHB) lose from the securities sale in Q4 2024?
What is the yield difference between the old and new securities in FHB's portfolio restructuring?
