First Hawaiian Q3 profit falls as credit loss provision rises

First Hawaiian

Yesterday 13:09

Overview
US regional bank's Q3 net income fell 13.1% to $63.7 mln
Total loans and leases declined, while deposits increased slightly
Results included $24.3 mln noninterest expense and $31 mln tax benefit from prior reorganization

Outlook
Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers
CREDIT LOSS PROVISION - Provision for credit losses rose to $20.3 mln, driven by a $12.5 mln partial charge-off related to a single commercial real estate loan and other CRE loan downgrades
NONINTEREST EXPENSES -Noninterest expense increased by $29.6 mln, including $6.7 mln in merger-related costs and a $24.3 mln expense from settling tax liabilities tied to the 2016 corporate reorganization
INCOME TAX BENEFIT - Results included a $31.0 mln income tax benefit from an agreement to settle tax liabilities from the 2016 corporate reorganization

Company press release: ID:nGNX74XstT

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.52
 
Q3 Net Income
 
$63.73 mln
 
Q3 Net Interest Income
 
$174.10 mln
 
Q3 Credit Loss Provision
 
$20.31 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for First Hawaiian, Inc. is $29.00, about 11% above its October 22 closing price of $26.13
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 21 - Enterprise Financial Q3 profit falls as higher credit provisions offset loan growth
Oct 22 - Associated Banc-Corp Q3 adjusted EPS beats estimates 
Oct 20 - Bank OZK Q3 net income falls 9%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)