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First Hawaiian (NYSE: FHB) | Company Profile, History, Competitors

 

First Hawaiian (NYSE: FHB) is a regional bank with key operations in Hawaii. As of 2017, it has 2,300 employees and 62 banking locations in Hawaii, Guam and Saipan, It was founded in 1858 and headquartered in Honolulu, HI.

First Hawaiian is a full service bank that offers deposit accounts and lending services to consumer and commercial clients. It also offers credit card products, wealth management and merchant processing services. It is the largest bank by deposits in Hawaii today and has the leading deposit share in Guam and Saipan.[1]

Business Overview

FHB operates in three main segments:
  • Retail Banking (59% of 2017 Revenues): Serves retail customers and small business by offering products like deposit accounts, mortgages, auto financing, business loans and wealth management.
  • Commercial Banking (43% of 2017 Revenues): Serves middle-market and larger companies by offering products like deposit accounts, corporate banking, CRE lending, commercial lease financing and credit cards.
  • Treasury and Other (3% of 2017 Revenues): Manages interest rate risk across their portfolio.

Loan Portfolio (2017)

 Type  Amount ($bn)  %
 Commercial and Industrial
 $3.2  60%
 Real Estate - Commercial
 $2.6  23%
 Real Estate - Construction$0.5
4%
 Real Estate - Residential $3.8 32%
 Consumer
 $1.5  12%
 Lease Financing
 $0.2  5%
 Total  $11.9  100%

Deposit Mix (2017)

 Type  Amount ($bn)  %
 Demand
 $6.2  35%
 Savings
 $4.5  26%
 Money Market
 $2.8  16%
 Time
 $4.2  24%
 Total  $17.6  100%

Banking Locations (2017)

 Region  Location
 Hawaii
57 
 Guam
 3 
 Saipan
 2 
 Total  62 

History

In 1858 , it was founded under the name Bishop & Company under a partnership with Hawaii. In 1929, it grew out of a merger between five Hawaiian banks. In 1969, it changed its name to First Hawaiian Bank and formed a bank holding company in 1973. In 1998, a subsidiary of BNP Paribas merged into the parent company and took the name BancWest Corporation. In 2016, it filed an initial public offering.

Management

Robert S. Harrison (CEO): Robert Harrison serves as CEO since 2012. Prior, he served in various roles at the company including COO, Vice Chairman and Chief Risk Officer.

Eric K. Yeaman (CFO): Eric Yeaman serves as CFO since 2018. Prior, he served as CEO of Hawaiian Telecom, COO and CFO of Hawaiian Electric and CFO of Kamehameha Schools. He also worked as a Partner at Arthur Andersen LLP.

Financials

 $ USD in millions   

 2015  2016  2017
 Book Value

$2,740 
$2,477 
$2,459 
 Net Interest Margin %

 -
 2.85%  2.97%
 Net Charge-Off Rate %

-
0.08%
0.14%
 Loan/Deposit Ratio %

67%
69%
70%






 Net Interest Income

 $461 
 $492 
 $523 
 Net Income

$214 
 $230 
 $184 
 EPS

$1.53 
$1.65 
$1.32