EXHIBIT 99.1

For Immediate Release

First Hawaiian, Inc. Reports Fourth Quarter 2022 Financial Results and Declares Dividend

HONOLULU, Hawaii January 27, 2023--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2022.

“We are pleased to report that we closed 2022 with a solid fourth quarter,” said Bob Harrison, Chairman, President and CEO. “We saw continued earnings growth, driven by strong loan growth and excellent credit quality.”

On January 25, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 3, 2023, to stockholders of record at the close of business on February 17, 2023.

Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $40 million of its outstanding common stock during 2023.

Fourth Quarter 2022 Highlights:

●

Net income of $79.6 million, or $0.62 per diluted share

●

Total loans and leases increased $391.6 million versus prior quarter

●

Total deposits decreased $402.7 million versus prior quarter

●

Net interest margin increased 22 basis points to 3.15%

●

Recorded a $3.0 million provision for credit losses

●

Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $24.6 billion as of December 31, 2022, compared to $24.9 billion as of September 30, 2022.

Gross loans and leases were $14.1 billion as of December 31, 2022, an increase of $391.6 million, or 2.9%, from $13.7 billion as of September 30, 2022.

Total deposits were $21.7 billion as of December 31, 2022, a decrease of $402.7 million, or 1.8%, from $22.1 billion as of September 30, 2022.

Net Interest Income

Net interest income for the fourth quarter of 2022 was $171.8 million, an increase of $9.1 million, or 5.6%, compared to $162.7 million for the prior quarter.

The net interest margin was 3.15% in the fourth quarter of 2022, an increase of 22 basis points compared to 2.93% in the prior quarter.

Provision Expense

During the quarter ended December 31, 2022, we recorded a $3.0 million provision for credit losses. In the quarter ended September 30, 2022, we recorded a $3.2 million provision for credit losses.

Noninterest Income

Noninterest income was $48.2 million in the fourth quarter of 2022, an increase of $2.3 million compared to noninterest income of $45.9 million in the prior quarter.

Noninterest Expense

Noninterest expense was $113.9 million in the fourth quarter of 2022, an increase of $0.6 million compared to noninterest expense of $113.3 million in the prior quarter.

The efficiency ratio was 51.5% and 54.0% for the quarters ended December 31, 2022 and September 30, 2022, respectively.

Taxes

The effective tax rate was 22.8% and 25.0% for the quarters ended December 31, 2022 and September 30, 2022, respectively.

Asset Quality

The allowance for credit losses was $143.9 million, or 1.02% of total loans and leases, as of December 31, 2022, compared to $148.2 million, or 1.08% of total loans and leases, as of September 30, 2022. The reserve for unfunded commitments was $33.8 million as of December 31, 2022, compared to $30.1 million as of September 30, 2022. Net charge-offs were $3.5 million, or 0.10% of average loans and leases on an annualized basis for the quarter ended December 31, 2022, compared to net charge-offs of $2.8 million, or 0.08% of average loans and leases on an annualized basis, for the quarter ended September 30, 2022. Total non-performing assets were $12.0 million, or 0.09% of total loans and leases and other real estate owned, on December 31, 2022, compared to total non-performing assets of $8.4 million, or 0.06% of total loans and leases and other real estate owned, on September 30, 2022.

Capital

Total stockholders’ equity was $2.3 billion on December 31, 2022 compared to $2.2 billion on September 30, 2022.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.11%, 11.82% and 12.92%, respectively, on December 31, 2022, compared with 7.78%, 11.79% and 12.92%, respectively, on September 30, 2022.

The Company did not repurchase any shares in the fourth quarter.

As to the stock repurchase program approved for 2023, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

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.

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 8:00 a.m. Hawaii Time.

Please note that the process for accessing the conference call has changed. Participants will need to click on the registration link provided below, register for the conference call, and then you will receive the dial-in number and a personalized PIN code.

To access the call by phone, please register via the following link:

https://register.vevent.com/register/BI73d7abf351534972a54610116ab71617, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

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. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. 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 ongoing impacts of COVID-19, 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, 2021 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022.

Use of Non-GAAP Financial Measures

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Lindsay Chambers
(808) 525-6268	(808) 525-6254
[email protected]	[email protected]


Financial Highlights	Table 1
	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share data)	2022			2022			2021			2022			2021
Operating Results:
Net interest income	$	171,794		$	162,736		$	137,327		$	613,549		$	530,559
Provision for credit losses		2,956			3,183			—			1,392			(39,000)
Noninterest income		48,151			45,857			41,573			179,525			184,916
Noninterest expense		113,922			113,332			108,749			440,471			405,479
Net income		79,588			69,018			57,022			265,685			265,735
Basic earnings per share		0.62			0.54			0.45			2.08			2.06
Diluted earnings per share		0.62			0.54			0.44			2.08			2.05
Dividends declared per share		0.26			0.26			0.26			1.04			1.04
Dividend payout ratio		41.94	%		48.15	%		59.09	%		50.00	%		50.73	%
Performance Ratios⁽¹⁾:
Net interest margin		3.15	%		2.93	%		2.38	%		2.78	%		2.43	%
Efficiency ratio		51.47	%		53.98	%		60.50	%		55.20	%		56.45	%
Return on average total assets		1.28	%		1.10	%		0.88	%		1.06	%		1.09	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.34	%		1.14	%		0.92	%		1.11	%		1.13	%
Return on average total stockholders' equity		14.27	%		12.08	%		8.46	%		11.44	%		9.81	%
Return on average tangible stockholders' equity (non-GAAP)⁽²⁾		25.93	%		21.53	%		13.47	%		20.03	%		15.51	%
Average Balances:
Average loans and leases	$	13,876,136		$	13,491,428		$	12,814,316		$	13,314,821		$	13,034,295
Average earning assets		21,856,135			22,258,066			23,100,445			22,272,795			21,921,149
Average assets		24,575,648			24,957,042			25,650,505			24,964,422			24,426,258
Average deposits		21,725,177			22,148,039			22,246,577			22,058,497			21,011,587
Average stockholders' equity		2,213,030			2,267,152			2,675,513			2,321,606			2,708,370
Market Value Per Share:
Closing		26.04			24.63			27.33			26.04			27.33
High		27.16			28.14			30.14			31.16			30.80
Low		24.06			21.21			25.17			21.21			23.14


	As of			As of			As of
	December 31,			September 30,			December 31,
(dollars in thousands, except per share data)	2022			2022			2021
Balance Sheet Data:
Loans and leases	$	14,092,012		$	13,700,374		$	12,961,999
Total assets		24,577,223			24,870,272			24,992,410
Total deposits		21,689,029			22,091,738			21,816,146
Short-term borrowings		75,000			—			—
Total stockholders' equity		2,269,005			2,200,651			2,656,912

Per Share of Common Stock:
Book value	$	17.82		$	17.28		$	20.84
Tangible book value (non-GAAP)⁽²⁾		10.00			9.46			13.03

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.08	%		0.06	%		0.05	%
Allowance for credit losses for loans and leases / total loans and leases		1.02	%		1.08	%		1.21	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		11.82	%		11.79	%		12.24	%
Tier 1 Capital Ratio		11.82	%		11.79	%		12.24	%
Total Capital Ratio		12.92	%		12.92	%		13.49	%
Tier 1 Leverage Ratio		8.11	%		7.78	%		7.24	%
Total stockholders' equity to total assets		9.23	%		8.85	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)⁽²⁾		5.40	%		5.05	%		6.92	%

Non-Financial Data:
Number of branches		51			51			54
Number of ATMs		294			303			299
Number of Full-Time Equivalent Employees		2,063			2,042			2,036

(1)	Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.

(2)

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,
(dollars in thousands, except per share amounts)	2022		2022		2021		2022		2021
Interest income
Loans and lease financing	$	159,526	$	134,646	$	111,865	$	509,820	$	444,488
Available-for-sale investment securities		18,714		19,644		28,393		87,108		101,410
Held-to-maturity investment securities		19,137		17,950		—		55,376		—
Other		3,088		4,150		1,051		10,916		3,413
Total interest income		200,465		176,390		141,309		663,220		549,311
Interest expense
Deposits		28,202		13,653		3,216		49,201		13,853
Short-term and long-term borrowings		469		1		766		470		4,899
Total interest expense		28,671		13,654		3,982		49,671		18,752
Net interest income		171,794		162,736		137,327		613,549		530,559
Provision for credit losses		2,956		3,183		—		1,392		(39,000)
Net interest income after provision for credit losses		168,838		159,553		137,327		612,157		569,559
Noninterest income
Service charges on deposit accounts		7,376		7,089		7,171		28,809		27,510
Credit and debit card fees		16,376		17,746		16,266		66,028		63,580
Other service charges and fees		9,185		9,179		9,196		37,036		38,578
Trust and investment services income		9,023		9,800		8,895		36,465		34,719
Bank-owned life insurance		2,865		(341)		2,851		1,248		13,185
Investment securities gains, net		—		—		—		—		102
Other		3,326		2,384		(2,806)		9,939		7,242
Total noninterest income		48,151		45,857		41,573		179,525		184,916
Noninterest expense
Salaries and employee benefits		49,629		51,372		45,982		199,129		182,384
Contracted services and professional fees		17,638		16,625		14,603		70,027		63,349
Occupancy		8,175		8,115		8,074		31,034		29,348
Equipment		9,984		10,791		6,317		34,506		24,719
Regulatory assessment and fees		2,591		2,487		2,557		9,603		8,245
Advertising and marketing		2,072		1,902		1,579		7,996		6,108
Card rewards program		8,681		8,141		7,471		30,990		25,244
Other		15,152		13,899		22,166		57,186		66,082
Total noninterest expense		113,922		113,332		108,749		440,471		405,479
Income before provision for income taxes		103,067		92,078		70,151		351,211		348,996
Provision for income taxes		23,479		23,060		13,129		85,526		83,261
Net income	$	79,588	$	69,018	$	57,022	$	265,685	$	265,735
Basic earnings per share	$	0.62	$	0.54	$	0.45	$	2.08	$	2.06
Diluted earnings per share	$	0.62	$	0.54	$	0.44	$	2.08	$	2.05
Basic weighted-average outstanding shares		127,356,795		127,377,713		127,893,011		127,489,889		128,963,131
Diluted weighted-average outstanding shares		127,894,773		127,796,617		128,512,257		127,981,699		129,537,922


Consolidated Balance Sheets	Table 3
	December 31,		September 30,		December 31,
(dollars in thousands)	2022		2022		2021
Assets
Cash and due from banks	$	297,502	$	291,360	$	246,716
Interest-bearing deposits in other banks		229,122		657,574		1,011,753
Investment securities:
Available-for-sale, at fair value (amortized cost: $3,549,599 as of December 31, 2022, $3,673,396 as of September 30, 2022 and $8,560,733 as of December 31, 2021)		3,151,133		3,289,160		8,428,032
Held-to-maturity, at amortized cost (fair value: $3,814,822 as of December 31, 2022, $3,960,713 as of September 30, 2022 and nil as of December 31, 2021)		4,320,639		4,406,143		—
Loans held for sale		—		361		538
Loans and leases		14,092,012		13,700,374		12,961,999
Less: allowance for credit losses		143,900		148,163		157,262
Net loans and leases		13,948,112		13,552,211		12,804,737

Premises and equipment, net		280,355		299,179		318,448
Other real estate owned and repossessed personal property		91		139		175
Accrued interest receivable		78,194		68,545		63,158
Bank-owned life insurance		473,067		470,202		471,819
Goodwill		995,492		995,492		995,492
Mortgage servicing rights		6,562		6,866		8,302
Other assets		796,954		833,040		643,240
Total assets	$	24,577,223	$	24,870,272	$	24,992,410
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	12,824,383	$	12,774,645	$	12,422,283
Noninterest-bearing		8,864,646		9,317,093		9,393,863
Total deposits		21,689,029		22,091,738		21,816,146
Short-term borrowings		75,000		—		—
Retirement benefits payable		102,577		133,981		134,491
Other liabilities		441,612		443,902		384,861
Total liabilities		22,308,218		22,669,621		22,335,498

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022, issued/outstanding: 140,958,520 / 127,357,680 shares as of September 30, 2022 and issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021)		1,410		1,410		1,406
Additional paid-in capital		2,538,336		2,535,601		2,527,663
Retained earnings		736,544		690,433		604,534
Accumulated other comprehensive loss, net		(639,254)		(658,756)		(121,693)
Treasury stock (13,600,591 shares as of December 31, 2022, 13,600,840 shares as of September 30, 2022 and 13,079,243 shares as of December 31, 2021)		(368,031)		(368,037)		(354,998)
Total stockholders' equity		2,269,005		2,200,651		2,656,912
Total liabilities and stockholders' equity	$	24,577,223	$	24,870,272	$	24,992,410


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	December 31, 2022						September 30, 2022						December 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	321.3	$	2.9	3.64	%	$	724.0	$	4.0	2.20	%	$	2,074.5	$	0.8	0.15	%
Available-for-Sale Investment Securities
Taxable		3,180.8		18.3	2.30			3,733.8		19.2	2.05			7,515.2		25.8	1.37
Non-Taxable		37.9		0.5	5.42			45.1		0.6	5.16			615.3		3.3	2.14
Held-to-Maturity Investment Securities
Taxable		3,754.9		15.8	1.69			3,573.6		14.6	1.64			—		—	—
Non-Taxable		613.4		4.2	2.69			613.6		4.2	2.72			—		—	—
Total Investment Securities		7,587.0		38.8	2.04			7,966.1		38.6	1.93			8,130.5		29.1	1.43
Loans Held for Sale		0.1		—	6.50			0.7		—	3.62			1.0		—	1.35
Loans and Leases⁽¹⁾
Commercial and industrial		2,126.3		28.1	5.24			2,025.5		20.7	4.05			2,084.0		21.1	4.01
Commercial real estate		4,116.8		53.9	5.19			4,016.7		42.3	4.18			3,572.9		26.0	2.89
Construction		804.4		11.8	5.83			737.4		8.6	4.63			806.6		6.3	3.09
Residential:
Residential mortgage		4,280.6		38.1	3.56			4,224.0		36.4	3.45			4,014.9		34.9	3.48
Home equity line		1,029.7		8.1	3.10			991.1		7.2	2.87			864.4		5.5	2.52
Consumer		1,220.9		17.1	5.55			1,218.0		17.1	5.57			1,241.3		16.3	5.22
Lease financing		297.4		2.9	3.92			278.7		2.7	3.81			230.2		1.9	3.27
Total Loans and Leases		13,876.1		160.0	4.58			13,491.4		135.0	3.98			12,814.3		112.0	3.48
Other Earning Assets		71.6		0.2	0.80			75.9		0.1	0.69			80.1		0.3	1.27
Total Earning Assets⁽²⁾		21,856.1		201.9	3.67			22,258.1		177.7	3.18			23,100.4		142.2	2.45
Cash and Due from Banks		286.4						277.0						282.2
Other Assets		2,433.1						2,421.9						2,267.9
Total Assets	$	24,575.6					$	24,957.0					$	25,650.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,455.5	$	10.3	0.63	%	$	6,871.5	$	6.7	0.39	%		7,086.0	$	0.8	0.04	%
Money Market		4,012.9		9.8	0.97			4,086.1		4.8	0.47			4,048.3		0.5	0.05
Time		2,163.2		8.1	1.48			1,720.5		2.1	0.48			1,819.0		1.9	0.42
Total Interest-Bearing Deposits		12,631.6		28.2	0.89			12,678.1		13.6	0.43			12,953.3		3.2	0.10
Federal Funds Purchased		45.5		0.5	4.09			0.2		—	1.67			—		—	—
Long-Term Borrowings		—		—	—			—		—	—			110.9		0.8	2.74
Total Interest-Bearing Liabilities		12,677.1		28.7	0.90			12,678.3		13.6	0.43			13,064.2		4.0	0.12
Net Interest Income			$	173.2					$	164.1					$	138.2
Interest Rate Spread					2.77	%					2.75	%					2.33	%
Net Interest Margin					3.15	%					2.93	%					2.38	%
Noninterest-Bearing Demand Deposits		9,093.6						9,469.9						9,293.3
Other Liabilities		591.9						541.6						617.5
Stockholders' Equity		2,213.0						2,267.2						2,675.5
Total Liabilities and Stockholders' Equity	$	24,575.6					$	24,957.0					$	25,650.5

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2)	Interest income includes taxable-equivalent basis adjustments of $1.4 million, $1.3 million and $0.9 million for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.


Average Balances and Interest Rates											Table 5
	Year Ended						Year Ended
	December 31, 2022						December 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	867.6	$	10.3	1.19	%	$	1,723.0	$	2.3	0.14	%
Available-for-Sale Investment Securities
Taxable		4,650.1		83.2	1.79			6,608.9		93.3	1.41
Non-Taxable		180.0		4.9	2.74			481.9		10.2	2.12
Held-to-Maturity Investment Securities
Taxable		2,728.2		45.5	1.67			—		—	—
Non-Taxable		460.6		12.5	2.71			—		—	—
Total Investment Securities		8,018.9		146.1	1.82			7,090.8		103.5	1.46
Loans Held for Sale		0.6		—	3.14			3.6		0.1	2.24
Loans and Leases⁽¹⁾
Commercial and industrial		2,019.5		78.4	3.88			2,586.8		82.2	3.18
Commercial real estate		3,895.3		153.2	3.93			3,456.7		101.6	2.94
Construction		755.0		32.5	4.30			804.5		25.4	3.16
Residential:
Residential mortgage		4,200.2		145.5	3.46			3,836.6		138.3	3.60
Home equity line		965.0		26.5	2.75			834.3		22.2	2.66
Consumer		1,218.9		65.3	5.35			1,275.5		67.8	5.31
Lease financing		260.9		9.7	3.69			239.9		7.6	3.14
Total Loans and Leases		13,314.8		511.1	3.84			13,034.3		445.1	3.42
Other Earning Assets		70.9		0.6	0.89			69.4		1.1	1.54
Total Earning Assets⁽²⁾		22,272.8		668.1	3.00			21,921.1		552.1	2.52
Cash and Due from Banks		289.0						289.3
Other Assets		2,402.6						2,215.9
Total Assets	$	24,964.4					$	24,426.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,741.5	$	19.2	0.29	%	$	6,581.1	$	2.5	0.04	%
Money Market		4,068.8		16.6	0.41			3,831.4		2.1	0.05
Time		1,826.7		13.4	0.73			2,005.0		9.3	0.47
Total Interest-Bearing Deposits		12,637.0		49.2	0.39			12,417.5		13.9	0.11
Federal Funds Purchased		11.5		0.5	4.08			—		—	—
Long-Term Borrowings		—		—	—			177.5		4.9	2.76
Total Interest-Bearing Liabilities		12,648.5		49.7	0.39			12,595.0		18.8	0.15
Net Interest Income			$	618.4					$	533.3
Interest Rate Spread					2.61	%					2.37	%
Net Interest Margin					2.78	%					2.43	%
Noninterest-Bearing Demand Deposits		9,421.5						8,594.1
Other Liabilities		572.8						528.8
Stockholders' Equity		2,321.6						2,708.4
Total Liabilities and Stockholders' Equity	$	24,964.4					$	24,426.3

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2)	Interest income includes taxable-equivalent basis adjustments of $4.9 million and $2.8 million for the year ended December 31, 2022 and 2021, respectively.


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended December 31, 2022
	Compared to September 30, 2022
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(2.9)	$	1.8	$	(1.1)
Available-for-Sale Investment Securities
Taxable		(3.0)		2.1		(0.9)
Non-Taxable		(0.1)		—		(0.1)
Held-to-Maturity Investment Securities
Taxable		0.8		0.4		1.2
Total Investment Securities		(2.3)		2.5		0.2
Loans and Leases
Commercial and industrial		1.1		6.3		7.4
Commercial real estate		1.1		10.5		11.6
Construction		0.8		2.4		3.2
Residential:
Residential mortgage		0.5		1.2		1.7
Home equity line		0.3		0.6		0.9
Lease financing		0.2		—		0.2
Total Loans and Leases		4.0		21.0		25.0
Other Earning Assets		—		0.1		0.1
Total Change in Interest Income		(1.2)		25.4		24.2

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.4)		4.0		3.6
Money Market		(0.1)		5.1		5.0
Time		0.7		5.3		6.0
Total Interest-Bearing Deposits		0.2		14.4		14.6
Federal Funds Purchased		0.5		—		0.5
Total Change in Interest Expense		0.7		14.4		15.1
Change in Net Interest Income	$	(1.9)	$	11.0	$	9.1


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended December 31, 2022
	Compared to December 31, 2021
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(1.2)	$	3.3	$	2.1
Available-for-Sale Investment Securities
Taxable		(19.5)		12.0		(7.5)
Non-Taxable		(4.9)		2.1		(2.8)
Held-to-Maturity Investment Securities
Taxable		15.8		—		15.8
Non-Taxable		4.2		—		4.2
Total Investment Securities		(4.4)		14.1		9.7
Loans and Leases
Commercial and industrial		0.4		6.6		7.0
Commercial real estate		4.5		23.4		27.9
Construction		—		5.5		5.5
Residential:
Residential mortgage		2.3		0.9		3.2
Home equity line		1.2		1.4		2.6
Consumer		(0.2)		1.0		0.8
Lease financing		0.6		0.4		1.0
Total Loans and Leases		8.8		39.2		48.0
Other Earning Assets		—		(0.1)		(0.1)
Total Change in Interest Income		3.2		56.5		59.7

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.1)		9.6		9.5
Money Market		—		9.3		9.3
Time		0.5		5.7		6.2
Total Interest-Bearing Deposits		0.4		24.6		25.0
Federal Funds Purchased		0.5		—		0.5
Long-Term Borrowings		(0.4)		(0.4)		(0.8)
Total Change in Interest Expense		0.5		24.2		24.7
Change in Net Interest Income	$	2.7	$	32.3	$	35.0


Analysis of Change in Net Interest Income						Table 8
	Year Ended December 31, 2022
	Compared to December 31, 2021
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(1.7)	$	9.7	$	8.0
Available-for-Sale Investment Securities
Taxable		(31.6)		21.5		(10.1)
Non-Taxable		(7.7)		2.4		(5.3)
Held-to-Maturity Investment Securities
Taxable		45.5		—		45.5
Non-Taxable		12.5		—		12.5
Total Investment Securities		18.7		23.9		42.6
Loans Held for Sale		(0.1)		—		(0.1)
Loans and Leases
Commercial and industrial		(20.0)		16.2		(3.8)
Commercial real estate		14.1		37.5		51.6
Construction		(1.6)		8.7		7.1
Residential:
Residential mortgage		12.7		(5.5)		7.2
Home equity line		3.5		0.8		4.3
Consumer		(3.0)		0.5		(2.5)
Lease financing		0.7		1.4		2.1
Total Loans and Leases		6.4		59.6		66.0
Other Earning Assets		—		(0.5)		(0.5)
Total Change in Interest Income		23.3		92.7		116.0

Change in Interest Expense:
Interest-Bearing Deposits
Savings		—		16.7		16.7
Money Market		0.1		14.4		14.5
Time		(0.8)		4.9		4.1
Total Interest-Bearing Deposits		(0.7)		36.0		35.3
Federal Funds Purchased		0.5		—		0.5
Long-Term Borrowings		(2.5)		(2.4)		(4.9)
Total Change in Interest Expense		(2.7)		33.6		30.9
Change in Net Interest Income	$	26.0	$	59.1	$	85.1


Loans and Leases						Table 9
	December 31,		September 30,		December 31,
(dollars in thousands)	2022		2022		2021
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	2,217,604	$	2,017,095	$	1,870,657
Paycheck Protection Program loans		18,293		26,712		216,442
Total commercial and industrial		2,235,897		2,043,807		2,087,099
Commercial real estate		4,132,309		4,103,310		3,639,623
Construction		844,643		765,862		813,969
Residential:
Residential mortgage		4,302,788		4,252,041		4,083,367
Home equity line		1,055,351		1,010,631		876,608
Total residential		5,358,139		5,262,672		4,959,975
Consumer		1,222,934		1,218,885		1,229,939
Lease financing		298,090		305,838		231,394
Total loans and leases	$	14,092,012	$	13,700,374	$	12,961,999


Deposits						Table 10
	December 31,		September 30,		December 31,
(dollars in thousands)	2022		2022		2021
Demand	$	8,864,646	$	9,317,093	$	9,393,863
Savings		6,382,910		6,724,783		6,612,775
Money Market		3,965,423		4,150,940		4,033,070
Time		2,476,050		1,898,922		1,776,438
Total Deposits	$	21,689,029	$	22,091,738	$	21,816,146


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More						Table 11
	December 31,		September 30,		December 31,
(dollars in thousands)	2022		2022		2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	1,215	$	1,528	$	718
Commercial real estate		727		727		727
Total Commercial Loans		1,942		2,255		1,445
Residential Loans:
Residential mortgage		6,166		6,028		5,637
Home equity line		3,797		—		—
Total Residential Loans		9,963		6,028		5,637
Total Non-Accrual Loans and Leases		11,905		8,283		7,082
Other Real Estate Owned		91		139		175
Total Non-Performing Assets	$	11,996	$	8,422	$	7,257

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	291	$	1,445	$	740
Construction		—		390		—
Total Commercial Loans		291		1,835		740
Residential Loans:
Residential mortgage		58		—		987
Home equity line		—		1,832		3,681
Total Residential Loans		58		1,832		4,668
Consumer		2,885		1,976		1,800
Total Accruing Loans and Leases Past Due 90 Days or More	$	3,234	$	5,643	$	7,208

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	25,399	$	27,342	$	34,893
Total Loans and Leases	$	14,092,012	$	13,700,374	$	12,961,999


Allowance for Credit Losses and Reserve for Unfunded Commitments	Table 12
	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
(dollars in thousands)	2022			2022			2021			2022			2021
Balance at Beginning of Period	$	178,304		$	177,900		$	193,768			187,584			239,057
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(735)			(328)			(4,432)			(2,012)			(5,949)
Commercial real estate		—			(750)			—			(750)			(66)
Total Commercial Loans		(735)			(1,078)			(4,432)			(2,762)			(6,015)
Residential Loans:
Residential mortgage		(102)			(1)			(534)			(103)			(632)
Home equity line		(12)			—			(107)			(1,175)			(342)
Total Residential Loans		(114)			(1)			(641)			(1,278)			(974)
Consumer		(5,094)			(3,986)			(3,250)			(16,848)			(16,634)
Total Loans and Leases Charged-Off		(5,943)			(5,065)			(8,323)			(20,888)			(23,623)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		303			240			244			897			867
Commercial real estate		—			—			9			14			39
Construction		—			—			100			—			266
Lease financing		—			—			—			60			—
Total Commercial Loans		303			240			353			971			1,172
Residential Loans:
Residential mortgage		173			37			15			418			261
Home equity line		138			356			28			713			117
Total Residential Loans		311			393			43			1,131			378
Consumer		1,804			1,653			1,743			7,545			9,600
Total Recoveries on Loans and Leases Previously Charged-Off		2,418			2,286			2,139			9,647			11,150
Net Loans and Leases Charged-Off		(3,525)			(2,779)			(6,184)			(11,241)			(12,473)
Provision for Credit Losses		2,956			3,183			—			1,392			(39,000)
Balance at End of Period	$	177,735		$	178,304		$	187,584		$	177,735		$	187,584
Components:
Allowance for Credit Losses	$	143,900		$	148,163		$	157,262		$	143,900		$	157,262
Reserve for Unfunded Commitments		33,835			30,141			30,322			33,835			30,322
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	177,735		$	178,304		$	187,584		$	177,735		$	187,584
Average Loans and Leases Outstanding	$	13,876,136		$	13,491,428		$	12,814,316		$	13,314,821		$	13,034,295
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.10	%		0.08	%		0.19	%		0.08	%		0.10	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.02	%		1.08	%		1.21	%		1.02	%		1.21	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		12.09x			17.89x			22.21x			12.09x			22.21x

(1)	Annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2022

2021

2020

2019

2018

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

359,881

422,567

54,656

170,222

51,476

137,257

894,384

15,715

2,106,158

Special Mention

2,059

240

1,371

2,643

184

1,431

22,897

378

31,203

Substandard

625

289

1,117

1,092

668

885

14,733

19,474

Other ⁽¹⁾

17,679

7,721

4,329

3,965

1,881

1,167

42,320

—

79,062

Total Commercial and Industrial

380,244

430,817

61,473

177,922

54,209

140,740

974,334

16,158

2,235,897

Commercial Real Estate

Risk rating:

Pass

889,583

695,882

319,838

565,587

395,474

1,173,163

48,081

—

4,087,608

Special Mention

170

—

555

14,878

512

11,398

675

—

28,188

Substandard

—

173

—

1,704

14,485

—

16,362

Other ⁽¹⁾

—

151

—

151

Total Commercial Real Estate

889,753

695,882

320,566

580,465

397,690

1,199,197

48,756

—

4,132,309

Construction

Risk rating:

Pass

124,464

261,536

96,423

97,000

88,973

84,704

25,957

—

779,057

Special Mention

—

221

—

221

Substandard

—

490

—

511

Other ⁽¹⁾

29,694

21,339

4,686

2,201

3,784

2,196

954

—

64,854

Total Construction

154,158

282,875

101,109

99,422

92,778

87,390

26,911

—

844,643

Lease Financing

Risk rating:

Pass

113,563

24,052

43,497

37,502

6,004

67,687

—

292,305

Special Mention

—

411

2,498

1,299

—

4,208

Substandard

—

197

1,357

—

1,577

Total Lease Financing

113,563

24,463

46,192

38,813

6,015

69,044

—

298,090

Total Commercial Lending

1,537,718

1,434,037

529,340

896,622

550,692

1,496,371

1,050,001

16,158

7,510,939

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

(continued)

Amortized

(dollars in thousands)

2022

2021

2020

2019

2018

Prior

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

557,636

1,064,444

560,463

245,241

165,258

920,100

—

3,513,142

680 - 739

73,929

112,672

82,416

40,355

22,126

130,508

—

462,006

620 - 679

12,320

13,804

9,881

3,649

3,054

35,441

—

78,149

550 - 619

2,455

2,246

1,791

263

601

6,955

—

14,311

Less than 550

—

1,321

367

—

966

5,304

—

7,958

No Score ⁽³⁾

22,289

14,671

6,820

10,599

15,921

47,245

—

117,545

Other ⁽²⁾

18,970

18,211

15,287

9,201

9,124

29,128

9,202

554

109,677

Total Residential Mortgage

687,599

1,227,369

677,025

309,308

217,050

1,174,681

9,202

554

4,302,788

Home Equity Line

FICO:

740 and greater

—

817,123

2,059

819,182

680 - 739

—

171,117

2,714

173,831

620 - 679

—

45,368

2,100

47,468

550 - 619

—

7,485

1,029

8,514

Less than 550

—

1,151

481

1,632

No Score ⁽³⁾

—

4,724

—

4,724

Total Home Equity Line

—

1,046,968

8,383

1,055,351

Total Residential Lending

687,599

1,227,369

677,025

309,308

217,050

1,174,681

1,056,170

8,937

5,358,139

Consumer Lending

FICO:

740 and greater

200,887

111,047

53,534

43,912

24,951

8,432

125,126

185

568,074

680 - 739

99,787

67,140

37,260

31,751

15,874

7,665

72,101

514

332,092

620 - 679

25,949

29,587

14,226

16,872

9,672

6,488

31,854

937

135,585

550 - 619

3,017

5,475

5,226

8,056

5,396

3,924

11,269

854

43,217

Less than 550

656

1,351

2,286

3,779

1,869

1,593

3,541

443

15,518

No Score ⁽³⁾

3,205

258

—

38,805

227

42,599

Other ⁽²⁾

1,615

4,082

353

1,368

—

78,430

85,849

Total Consumer Lending

335,116

218,940

112,885

105,789

57,786

28,131

361,126

3,161

1,222,934

Total Loans and Leases

2,560,433

2,880,346

1,319,250

1,311,719

825,528

2,699,183

2,467,297

28,256

14,092,012

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Year Ended
	December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)	2022			2022			2021			2022			2021
Income Statement Data:
Net income	$	79,588		$	69,018		$	57,022		$	265,685		$	265,735

Average total stockholders' equity	$	2,213,030		$	2,267,152		$	2,675,513		$	2,321,606		$	2,708,370
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,217,538		$	1,271,660		$	1,680,021		$	1,326,114		$	1,712,878

Average total assets	$	24,575,648		$	24,957,042		$	25,650,505		$	24,964,422		$	24,426,258
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	23,580,156		$	23,961,550		$	24,655,013		$	23,968,930		$	23,430,766

Return on average total stockholders' equity⁽¹⁾		14.27	%		12.08	%		8.46	%		11.44	%		9.81	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		25.93	%		21.53	%		13.47	%		20.03	%		15.51	%

Return on average total assets⁽¹⁾		1.28	%		1.10	%		0.88	%		1.06	%		1.09	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.34	%		1.14	%		0.92	%		1.11	%		1.13	%



	As of			As of			As of
	December 31,			September 30,			December 31,
(dollars in thousands, except per share amounts)	2022			2022			2021
Balance Sheet Data:
Total stockholders' equity	$	2,269,005		$	2,200,651		$	2,656,912
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,273,513		$	1,205,159		$	1,661,420

Total assets	$	24,577,223		$	24,870,272		$	24,992,410
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	23,581,731		$	23,874,780		$	23,996,918

Shares outstanding		127,363,327			127,357,680			127,502,472

Total stockholders' equity to total assets		9.23	%		8.85	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.40	%		5.05	%		6.92	%

Book value per share	$	17.82		$	17.28		$	20.84
Tangible book value per share (non-GAAP)	$	10.00		$	9.46		$	13.03

(1)	Annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.


001-14585		99-0156159
(Commission File Number)		(IRS Employer Identification No.)


999 Bishop St., 29th Floor
Honolulu, Hawaii		96813
(Address of Principal Executive Offices)		(Zip Code)

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, par value $0.01 per share	FHB	NASDAQ Global Select Market


Exhibit No.		Description

99.1		Press release of First Hawaiian, Inc. dated January 27, 2023 containing financial information for its quarter ended December 31, 2022.

104		Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

Pril
	FIRST HAWAIIAN, INC.

Date: January 27, 2023	By:	/s/ Robert S. Harrison
		Robert S. Harrison
		Chairman of the Board, President and Chief Executive Officer
		(Principal Executive Officer)


Delaware
(State or Other Jurisdiction of Incorporation)