First Hawaiian Bank net worth and financial strength make it a key player in the banking industry.
From its $3.11 billion market cap to revenue streams and capital ratios, Ando Money takes you through the numbers that define its financial standing in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | First Hawaiian Bank |
| Full Name | First Hawaiian, Inc. |
| Traded as | NASDAQ: FHB |
| ISIN | US32051X1081 |
| Founded | 1858 |
| Founders | Charles Reed Bishop, William A. Aldrich |
| Country/Territory | United States |
| Headquarters | Honolulu, Hawaii |
| Chief Executive Officer | Bob Harrison |
| Number of Employees | 2,065 |
| Market Cap | $3.11 Billion (September 2024) |
| Total Assets | $24.3 Billion (as of Q1 2024) |
| Total Equity | $2.5 Billion (as of Q1 2024) |
| Revenue | $154.4 Million (Q1 2024) |
| Net Income | $54.2 Million (Q1 2024) |
What is the Net Worth/ Market Cap Of First Hawaiian Bank in 2024?
As of September 2024, First Hawaiian Bank boasts a market cap of $3.11 billion, placing it as the world’s 3508th most valuable company by market capitalization.
This figure represents the total value of the bank’s outstanding shares in the public market.
While First Hawaiian Bank plays a significant role in the Hawaiian and Pacific regions, it’s still relatively modest in size compared to global banking giants.
In terms of industry comparison, First Hawaiian Bank stands among other regional players but does not rank among the largest global institutions.
Below are names of a few other banks that operate in similar markets or have a comparable size:
- Bank of the West
- Union Bank of California
- East West Bank
- Pioneer Federal Savings Bank
- Pacific One Bank
- ANB Financial Corporation
- U.S. Bancorp
- American National Bank
- BNP Paribas
For those interested in a more detailed view of banking leaders, here’s a helpful guide to the largest financial institutions in the world.
First Hawaiian Bank Financial Performance Overview
How First Hawaiian Bank Generates Revenue: Key Sources
First Hawaiian Bank derives its revenue from a well-diversified portfolio of services, including deposit products, loans, wealth management, and insurance services.
At the heart of their income streams lies their loan portfolio, which includes both commercial and residential loans. The interest generated from these loans forms a crucial part of the bank’s revenue.
Additionally, the bank benefits from fees on deposit accounts, credit and debit card fees, and trust services income, all of which contribute to its financial strength.
For instance, in the first quarter of 2024, the bank reported net interest income of $154.4 million, demonstrating a strong revenue base.
Meanwhile, non-interest income totaled $51.4 million, reflecting revenue from various service charges and fees, underscoring the importance of the bank’s diversified income streams.
Financial Performance and Earnings Reports
In the first quarter of 2024, First Hawaiian Bank demonstrated a solid financial performance. The bank posted a net income of $54.2 million.
Compared to the previous quarter, this represents growth in earnings, which is a positive indicator of the bank’s ongoing stability in the face of fluctuating market conditions.
The bank’s net interest margin also increased to 2.91%, a 10-basis-point rise from the prior quarter, which is a reflection of higher interest income from its loan products and careful cost management in interest expenses.
Notably, the bank has also been vigilant in managing non-performing assets, which stood at $18 million as of March 31, 2024.
The Role of Loan Portfolio in Financial Strength
A significant portion of First Hawaiian Bank’s financial success comes from its robust loan portfolio, which totaled $14.3 billion by the end of the first quarter in 2024.
This portfolio consists of both commercial and industrial loans as well as residential mortgages.
Commercial loans, which account for a considerable share of the bank’s lending activities, contribute notably to the bank’s interest income.
One key strength is the bank’s commercial real estate loans, which total $4.3 billion. This sector alone plays a critical role in supporting the bank’s overall profitability.
Furthermore, the bank’s careful management of credit loss provisions, which amounted to $6.3 million in the first quarter of 2024, helps mitigate potential risks in the loan portfolio.
How Deposits Impact Financial Health
Deposits play an essential role in the bank’s liquidity and ability to extend credit.
By March 2024, First Hawaiian Bank reported total deposits of $20.7 billion, which represented a slight decrease of $663.2 million from the previous quarter.
Despite this reduction, the bank continues to maintain a strong deposit base that supports its lending activities and overall financial stability.
Savings, money market, and time deposits are some of the bank’s most important products, offering liquidity while also serving as a steady source of funding for the bank’s lending operations.
The bank also boasts a wide range of services for both consumer and business customers, enabling it to maintain a strong relationship with its depositors.
Net Interest Margin and Profitability
The bank’s net interest margin (NIM) is a critical indicator of its profitability, standing at 2.91% for the first quarter of 2024.
This NIM reflects the bank’s ability to balance its interest income from loans with the cost of interest-bearing liabilities like deposits and borrowings.
The increase in NIM compared to previous periods showcases the bank’s ability to improve profitability even in a competitive lending environment.
Additionally, First Hawaiian Bank continues to focus on maximizing interest income from higher-yielding products while carefully managing its loan portfolio to reduce risk and exposure to non-performing loans.
Capital Ratios and Financial Stability
Maintaining strong capital ratios is crucial for the long-term health of any financial institution, and First Hawaiian Bank is no exception.
As of March 2024, the bank’s Tier 1 capital ratio stood at 12.55%, with a total capital ratio of 13.75%. These strong capital ratios are a testament to the bank’s solid financial foundation and its ability to weather economic fluctuations.
The bank’s equity base of $2.5 billion also highlights its financial resilience and ability to absorb potential losses.
Strong capital ratios provide the bank with the flexibility needed to expand its lending activities while maintaining sufficient liquidity to meet its obligations.
Dividend Payouts and Shareholder Value
Finally, First Hawaiian Bank continues to reward its shareholders with consistent dividend payouts.
In April 2024, the bank declared a quarterly dividend of $0.26 per share, reflecting its commitment to shareholder value.
The dividend payout ratio of 61.9% indicates that the bank is distributing a substantial portion of its profits to shareholders while retaining enough earnings for reinvestment and growth.
By maintaining dividend payouts, First Hawaiian Bank not only incentivizes investor confidence but also bolsters its market presence as a stable and profitable financial institution.
FAQs about First Hawaiian Bank
What is the history of First Hawaiian Bank?
The bank was founded in 1858 by Charles Reed Bishop and William A. Aldrich as Bishop & Co.. It expanded across the Pacific and became Hawaii’s largest bank.
Where is it headquartered?
It is headquartered in Honolulu, Hawaii at the First Hawaiian Center, the tallest building in Hawaii. The bank operates branches in Hawaii, Guam, and Saipan.
What services does it offer?
The bank offers deposit products, loans, wealth management, insurance, and trust services. It caters to both consumer and commercial customers, offering credit cards and merchant processing.
How many employees does it have?
As of 2024, it has around 2,065 full-time equivalent employees across its branches in Hawaii, Guam, and Saipan.
What is the market cap in 2024?
In September 2024, First Hawaiian Bank’s market cap is $3.11 billion, marking it as a major player in regional banking.
How does it generate revenue?
Revenue comes from loans, deposit products, wealth management services, credit card fees, and trust services. Interest income from loans is a key contributor.
What is the total asset value?
As of Q1 2024, the bank holds $24.3 billion in assets, including loans, deposits, and investments.
Who is the CEO of First Hawaiian Bank?
The bank’s CEO is Bob Harrison, overseeing operations and strategies across its Pacific markets.
How many branches does it have?
The bank operates 57 branches in Hawaii, three in Guam, and two in Saipan.
Conclusion
First Hawaiian Bank’s solid performance highlights its financial resilience. Want to dive deeper into bank finances? Share your thoughts, comments, or explore more on andomoney.com!
