First Hawaiian, Inc. (NASDAQ:FHB) Q1 2024 Earnings Call Transcript

Andrew Liesch: Thanks everyone. Just one quick question for me. You’ve covered everything else. You had the balance of shared national credits? And how is the credit quality performing in those right now?

Lea Nakamura: So we do have the balance of Shared National Credit. So we actually divide the portfolio up into credit only versus non-credit only. So the outstanding balance on the credit-only SNCs, at the end of the quarter was $324 million. And how is the credit quality standing up? There is been some weakness admittedly, but we do have expectations for resolutions on those. None of them are on non-accrual or anything. They are just incorporated into our table on Slide 15.

Andrew Liesch: Yeah, that’s really helpful. And thanks, you have covered everything else. I’ll step back.

Robert Harrison: Yes, just a little broader context maybe because obviously, the portfolio is much larger, and we have different cuts on it. The first cut is Hawaii-based Shared National Credit, which is mainland based Shared National Credit. And then within the mainland based Shared National Credit is the ones that really have a presence here in Hawaii that we have a broader relationship with. And then there are some that deploy some of our excess capital liquidity. We’re credit only as we call it, and that’s what Lea was referring to.

Andrew Liesch: Got it. Thank you.

Operator: And our next question will be coming from Kelly Motta of KBW. Your line is open.

Kelly Motta: Hi, thanks so much for the question. I apologize I drop off the call. So I apologize if this has been asked already but in the quarter, there was quite a nice uptick in loan yields. I’m wondering your release did call out a 3 basis point impact, a sort of one-time benefit in margin. Just wondering, if there is any of that in the loan yields that maybe there is non-accrual recoveries or anything that would be helpful when to consider when modeling the margin as we look ahead.

James Moses: Yeah, thanks Kelly. It’s Jamie. That was that 3 basis points that was on the loan side of things, in particular, was in the residential mortgage bucket. And it was related to kind of like timing differences, I’d say, in deferral take-ups related to Maui. And so we kind of had some catch-up interest that happened in Q1. That was about $1.5 million. So that was like a non-recurring piece of that in Q1.

Kelly Motta: Got it. That’s helpful. I’m going – I’ll step back. Thank you so much.

Operator: And I would now like to turn the conference back to Kevin Haseyama for closing remarks.

Kevin Haseyama: Thank you Tania. We appreciate your interest in First Hawaiian. Please feel free to contact me if you have any additional questions. Thanks again for joining us, and have a good weekend.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect.