First Hawaiian Bank (FHB) 4th quarter 2020 earnings report review
Category: First Hawaiian Bank (FHB)
Date: 26 January 2021 Stock price of First Hawaiian Bank (FHB): $25.01 We take a look at the 4th quarter 2020 earnings report of First Hawaiian Bank (FHB), Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. For the quarter the group reported net interest income of $135.2 million and net income of $61.7 million.
|
We finished 2020 with a strong quarter and continued to support our customers and meet their evolving needs by leveraging technology, digital channels and our deep relationships - Bob Harrison, Chairman, President and CEO. "
More About First Hawaiian Bank (FHB)
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
Overview of First Hawaiian Bank 4th quarter 2020 earnings report
Fourth Quarter 2020 Highlights:
- Net income of $61.7 million, or $0.47 per diluted share
- Net interest income increased $1.2 million, or 0.9%, versus prior quarter
- Net interest margin (“NIM”) was 2.71%, a 1 basis point increase versus the prior quarter
- Noninterest income increased $4.7 million, or 9.6%, versus prior quarter
- Noninterest expense decreased $3.5 million, or 3.8%, versus prior quarter
- Total deposits increased $330.0 million, or 1.7%, versus prior quarter.
- Recorded a $20.0 million provision for credit losses
- Board of Directors declared a quarterly dividend of $0.26 per share
First Hawaiian Bank management commentary on their 4th quarter 2020 earnings report
HONOLULU, Hawaii January 22, 2021--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2020.
“We finished 2020 with a strong quarter and continued to support our customers and meet their evolving needs by leveraging technology, digital channels and our deep relationships,” said Bob Harrison, Chairman, President and CEO. “In these uncertain times, our ability to remain agile and innovative positions us well to continue supporting our customers and the community.” On January 20, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 5, 2021 to stockholders of record at the close of business on February 22, 2021.
“We finished 2020 with a strong quarter and continued to support our customers and meet their evolving needs by leveraging technology, digital channels and our deep relationships,” said Bob Harrison, Chairman, President and CEO. “In these uncertain times, our ability to remain agile and innovative positions us well to continue supporting our customers and the community.” On January 20, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 5, 2021 to stockholders of record at the close of business on February 22, 2021.
Asset Quality
The allowance for credit losses was $208.5 million, or 1.57% of total loans and leases, as of December 31, 2020, compared to $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020. The reserve for unfunded commitments was $30.6 million as of December 31, 2020 compared to $24.6 million as of September 30, 2020. Net charge-offs were $1.4 million, or 0.04% of average loans and leases on an annualized basis for the quarter ended December 31, 2020, compared to net recoveries of $0.1 million, or 0.00% of average loans and leases on an annualized basis for the quarter ended September 30, 2020. Total non-performing assets were $9.1 million, or 0.07% of total loans and leases and other real estate owned, at December 31, 2020, compared to non-performing assets of $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020.
Capital
Total stockholders' equity was $2.7 billion at both December 31, 2020 and September 30, 2020. The tier 1 leverage, common equity tier 1 and total capital ratios were 8.00%, 12.47% and 13.72%, respectively, at December 31, 2020, compared with 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020. The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the fourth quarter.
The allowance for credit losses was $208.5 million, or 1.57% of total loans and leases, as of December 31, 2020, compared to $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020. The reserve for unfunded commitments was $30.6 million as of December 31, 2020 compared to $24.6 million as of September 30, 2020. Net charge-offs were $1.4 million, or 0.04% of average loans and leases on an annualized basis for the quarter ended December 31, 2020, compared to net recoveries of $0.1 million, or 0.00% of average loans and leases on an annualized basis for the quarter ended September 30, 2020. Total non-performing assets were $9.1 million, or 0.07% of total loans and leases and other real estate owned, at December 31, 2020, compared to non-performing assets of $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020.
Capital
Total stockholders' equity was $2.7 billion at both December 31, 2020 and September 30, 2020. The tier 1 leverage, common equity tier 1 and total capital ratios were 8.00%, 12.47% and 13.72%, respectively, at December 31, 2020, compared with 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020. The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the fourth quarter.
First Hawaiian Bank (FHB) stock price chart over the last 5 years
The image below shows the stock price history of First Hawaiian Bank (FHB) over the last 5 years. And its not been a very good time for First Hawaiian Bank stockholders with the stock increasing by only 3.1% over the last 5 years.
The stock of Sunrun (RUN) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Sunrun stock is positive at this point in time.
The stock of Sunrun (RUN) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Sunrun stock is positive at this point in time.
Latest stock valuation of First Hawaiian Bank (FHB)
So what is First Hawaiian Bank (FHB) stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Sunrun at $23.90 a stock.
We therefore believe the stock of First Hawaiian Bank is slightly overvalued at its current price of $25.01
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $25.01 thus a good entry point into First Hawaiian Bank would be at $22.50 or below.
We expect the stock of First Hawaiian Bank to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is slightly overvalued right now
We therefore believe the stock of First Hawaiian Bank is slightly overvalued at its current price of $25.01
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $25.01 thus a good entry point into First Hawaiian Bank would be at $22.50 or below.
We expect the stock of First Hawaiian Bank to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is slightly overvalued right now
Next earnings release of First Hawaiian Bank (FHB)
It is expected that First Hawaiian Bank will release their 1st quarter 2021 earnings report in late April 2021
Related Topics