FHB - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the First Hawaiian Q3 2018 Earnings Conference Call. At this time, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow with their time. [Operator Instructions] I'd now like to introduce your host for today's call, Kevin Haseyama.

You may begin.

Kevin Haseyama

thank financial for quarter results and we us of Tawanda, our review for you, you joining everyone as XXXX. Thank the third Eric Treasurer. Mesick, today President, first joining time me are Mallela, Harrison, the and With CFO Ravi and Bob us for COO; Risk Chief CEO; Ralph is Officer; and Chairman Yeaman,

Investor and our The our presentation the is We have that section. presentation fhb.com today. slide Relations our we will at for refer statement. deck today's remarks will downloading viewing SlideX during prepared a refer on website for to statements, of our Harbor call, in making be Also, available to so in Safe we please forward-looking

these now, financial will GAAP also certain non-GAAP quarter non-GAAP The I'll will X. measures of discuss on measures. measures. with call you to highlights, who turn comparable Bob to starting over to Slide this the And appendix third We the financial provide presentation reconciliations contains

Robert Harrison

able production Thank report and for you, overcome a progress as Kevin. made deposits, We're Hello, public core our large today and we This have our financial good quarter on as was quarter, solid you results. us joining strong third performance, pressured everyone, loan maintained and thank liquidity quality. asset unexpected reducing expenses prepayments situation access a excellent margin. temporary controlled that significant to the we

XX.X%. First down offerings stock our In Hawaiian brought additional ownership Paribas which combined with addition, in two completed BNP share repurchase, their

remain total XXth. to Board to tangible December of equity declared on approximately our common core Our share $X.XX on of of close core average on profitability at measures Directors year a we a of the X meet XX.X%, record on dividend November business a payable strong remain of ratio XX%. Yesterday, per return guidance track and full our of on shareholders assets return with X.XX% and core average tangible efficiency

quarter. stake from one conjunction Turning during in the significant repurchase resulting interest the in offerings offerings and XX.X% First ownership Hawaiian the their of decrease executed towards progress the XX.X%. a First to with They made Slide of completed Paribas Hawaiian share reducing BNPP in ownership their X, two from BNP

As result X from them the were the Shepard. Antiglio thank from and Board. down directors to the went John of number a these We’d to like of stepping Malonjivovich, nominated service board X for BNPP Xavier transactions, Michael their to

We’re members prominent X Wo, X First the also Hawaiian of three Scott local on Directors our have Kurren, serve pleased now three is directors. community, will board of Jenai Bancorp. Wall, the business are the to Faye independent All and to joined continue independent.

earnings of have million of remain as financial returned will with process. BNP we Paribas we repurchases, capital BNP their Including with our August share ratio within FHI of or leverage no USA’s under Additionally, a Xst, shareholder fall result, the and about the well capitalized since XX% consolidating scope At to ratio longer our the as plan the IPO. a XX.XX% CCAR of $XXX and stock capital end, of X.XX%. statements total quarter

Eric to balance sheet. to go over it through turn I’ll Now, the

Eric Yeaman

Thanks Bob.

during and versus for CRE the strong refinancing quarter the in the construction of prepayments loan Turning rate million higher X, portfolios, during repayments variable in quality prepayments stick strong the at production continued billion balance to prior demand than to for quarter. primarily by our we decreased and M&A flat essentially the unexpected of primarily loans C&I opportunities driven significant quarter, borrowers. end, market we by normal due saw activity, $XXX Slide significant many approximately loans triggering experienced C&I, but also resulting loan $XX.X quarter, high

real Consumer X.X% quality the grew portfolios. show like by costs. and higher loans, benefits. production loans we in in to at driving loans order $XX and interest to the to but CRE officer inventory their in in million estate primarily mortgage manage CRE credit million demand model $XX strong indirect X.X% lower levels have decline year saw dealers quarter by control during $XX construction normal approximately approximately continues flowing to refinancing. than the the as or due approximately loans million grew X.X%, switch balances both or driven C&I portfolio to saw loan their prepayments our auto also saw We institutional quarter. quarter for residential The in last growth unexpected card also dealer or increased up and group during continued loan We construction during significant positive

for Looking forward, the loan range. X% to expect X% growth in we XXXX be to

$XX.X Slide significant to to X, million during to quarter and make public continued deposits we our billion and the $XXX to deposit improving funding Turning balances progress time reducing as mix. by exposure decreased

by $XXX $XXX able approximately XX%. public million by or year-to-date our the We’re to and reduce or time million we reduce deposits public XX% deposits quarter time during

a time the growth and reduction large in one-time reduction Deposit approximately our deposits in been plans quarter. year-to-date. Excluding public X.X% first has customer

mix turn continue quarter in that, to post rate cover of continue These Ravi term call future borrowing. anticipated We’ll funding going of to sheet I’ll the improve to improves to income position our term rate the to deposit our diversify balance the order to by over $XXX work better public protect fixed funding pricing in to our some the We With forward. flexibility. against million time our replacing increases statement. and third mix deposits borrowings with help

Ravi Mallela

Thanks, Eric.

X% premium $X.X interest amortization Interest year. positive in adjustment included increase X, $XXX.X million $X.X third portfolio. million the and the income a million, was investment or Turning in essentially the quarter in second the prior quarter to income net unchanged the compared an the quarter versus Slide of prior

the The liquidity of versus been the balances quarter. primarily quarters and have X and our quarter, count, higher time impacts that by basis higher of a quarterly $X.X the borrowers. Excluding excess worked points margin net quarter term of adjustment, would After net lower the the of approximately second NIM. basis income balances higher higher, NIM third adjusting the the the exclude due million decline adjusted premium assets the public NIM adjusted was deposits, than amortization would on day X.XX% million versus partially points adjustment difference second primarily been X.XX%, or the have X.XX%. second costs in NIM the quarter reported balances end to out third interest due to we carried of the way excess reported reported higher position. yields to during earning quarter of of quarter approximately and interest deposit offset liquidity By X $X NIM decrease categories and The was other second quarter and point basis the impact X

asset the sensitive and Looking believe will still forward quarter, anticipate in by remains to fourth increase sheet the X balance margin X the position we to basis that that points. an

prior overdraft contract reward million we the early lower non-interest on the other quarter. X.X% third swap Turning principle a a services expenses. expenses, resolve a agreement than would in October, $X.X an $XX partially and quarter. lawsuit fees, $X.X $XX.X $X.X asset or $XX.X million booked non-recurring higher lower X.X% reached gain the million Executing from were to by to quarter, of In Slide and lower expenses was the due in class the of or to expenses lower Non-interest to offset income regarding charge, million have result and in $X.X second million consulting prior sale card primarily primarily prior fee million an income or recorded as non-interest expenses one-time or lower than higher quarter, quarter. leased about and due X, lower recoveries this expense the a been than action or million

efficiency XX.X% efficiency and in the on a XX.X% XX.X% quarter was third Our and ratio XX.X% year-to-date. quarter in basis. the year-to-date Core ratio was

to full call As With cover I'll efficiency our we ratio approximately outlook a year to of result, are asset over quality. the maintaining that, turn core XX%. Ralph

Ralph Mesick

I X you, charge-offs loans attention XX quarter. the and to Slide amounts your estate $X.X quarter. for loans on prior our the asset from lower quarter million and and assets the million basis real were basis were Total X Net this quarter could $XX.X quarter leases. owned. point leases Ravi. points points This and is basis total prior X, third If see or points that higher excellent is at non-performing to quality you average points Annualized, on of the X Thank basis This basis was the than and end other the turn XXXX. X year-over-year.

$XXX,XXX the For million, losses points allowance XXX quarter, which of was is million, leases. and point loans $X.X $XXX.X for third to and to the the up and basis loan by X increased basis total provision lease expense

to the Bob. our ahead, we credit quality. And don’t back shift any now, call in over anticipate I’ll turn Looking

Robert Harrison

Thanks, Ralph.

estate spending X.X% the The by X.X% led September to the months million, year-to-date increase continue sound. period in continued rates country. to X.X% the of segments same period remains were versus the volumes down Turning and in prices billion, versus one both year, and year XX, $XX.X the estate arrivals tourism visitor up X of and real Sales visitor August And were year. year. unemployment condominium robust the increase. the single-family in X.X market in was to through quarter, last economy sectors, real The perform prior of same unemployment State visitor last third but strong to over an with well for nationally. first homes industry rate remained through was the X.X% lowest slightly the Hawaii’s compared Slide

happy the Looking that, positive. With economy be your outlook any to the forward, we’d overall remains questions. of for answer

Operator

first Rochester Our line the Instructions] Deutsche question Dave of [Operator Bank. comes from of

line is Your open.

David Rochester

off on this that. a I FDIC just some guys for ratio just you efficiency your around wondering, for you’re assuming What around roll any outlook year? if preliminary for should next the the year. could be you The for rates was curious have, at I point? that tailwind surcharge, give next was thoughts of thoughts

Eric Yeaman

we let cover transition this call. the ratio efficiency talked range of outlook is Ravi of be look then Hi, is the in to the on costs Dave, to $X other and million that goal would about the Eric. When that some quarter’s ratio last we XXXX, I’ll and inclusive additional XX% manage the points. our absorbing I’ll at of efficiency

what that’s focused we’re really So on targeting.

David Rochester

kind the the surcharge? then of of are roll from you get expecting off And to what benefits guys

Ravi Mallela

be Ravi. is million. is The expected terms to this Dave, cost of surcharge $X in XXXX about in

David Rochester

you perspective know CCAR that would no to which guys can at switching Does out completely target I just talk that from and capital a longer this capital of buybacks you’re under process. BNP of part that mean thing? from kind about you are mean point, ratio more And regulatory

Robert Harrison

this Holding Company continue to defined under question. No, Good Reserve as Bob. Federal Act. is the are controlled be Dave, we Bank --

And so Bank a connected Holding from to them CCAR process, Act. still while we’re are the we the standpoint not part Company on of regulatory

David Rochester

for point from ownership a you to this to And to officially get have at go just out need to guys what would would umbrella? you regulators that under or be approval out? threshold verbal the be Would to happen from have below certain

Robert Harrison

verbal a are not to speak it's ongoing, regulator, approval, it's it. but really, happening. on approval a discussions can't Yes, talks There's various those from written we that and the

David Rochester

on And for wondering. pay book, the downs going downs then quarter? forward? from down SNC come much your SNC this the you just How mentioned is loan And we're what's did side, pay outlook

Ravi Mallela

basically the It about prior was so end the $X.X the SNC down from it Yes, of $XX about overall, quarter. quarter. billion book is million the at

for is comfortable, in Dave, we've consumer we're in loan pretty up residential, on said we will C&I, and as volatility We said area I construction, much the high-single-digit, is and that. our probably theory $XXX mid-single-digit saw and the talked now about track. we construction, we our On of sort one at hit that CRE high-single-digit C&I comfortable on on said would track. look million forecast we The year-to-date. residential, call hit every range that. on down we you we'll end right feel that think we're guidance consumer we're when

on is in the really the so, might still but but news October. good And with strong look we was, in rest guidance loan When the growth, We The there really C&I. slowed we'd feel our pipeline, We're production. strong. at hoping good our driven by be of pay be production for down is low-single-digit end portfolio for that in numbers, very year. volatility continues significantly up going we to filter continues flat what's it our the thought negative year, to

David Rochester

will singles, you be forward, Yes, I going that know I great? volatility mid Or loan there does but color Do growth that you bit. predict are probably appropriate? it a are think single how mid assuming just any it's this digit next year? thinking to persist to just pace about you tough is low mean, thinking for

Robert Harrison

Dave, this is Bob. that mid growth. about we're and single with a lot We've talked digit comfortable still the

David Rochester

Okay.

Robert Harrison

down will on or X% the an X% that don't digit uncertainty, so not ongoing portfolio growth. mid the in the to SNC uncertainty on single basis, think the that We pay continue

Operator

the The Morgan. next Steven question comes Alexopoulos line JP from with of

line Your open. is

Steven Alexopoulos

question of we of market. deposit think Hawaiian, your you about rational the be line the looks fairly can that? couple rates look A on side, bottom at talk a competitive with about increase in we deposit deposit If considered typically Mainland, a environment that running the driving I what's to

Ravi Mallela

in it's situations Yes, really, out, rates, are mean rational pretty customers time general, Steve, one-off side, deposit the where for still on pretty rationale, pushing Dave. it's we sort the overall do a of commercial it's higher But rational. it's that still still you public pretty market. When some a parsed see yields. I

Steven Alexopoulos

this time in look down, move deposits reasonable the is costs coming think a the we with even deposit forward? forward, range you for do So increase

Ravi Mallela

Yes.

Steven Alexopoulos

question. final just Then

decline seeing Looking are bearing? into was customer interest at bearing, or that the non-interest cash in using migration you

Ravi Mallela

both. I it's think

We into are migration seeing interest some bearing.

Robert Harrison

And seen use we down, their down have cash balances pay balances to their loans to well. as customers pay

of both. it’s a So, mix

Operator

line from Lynch. America of with comes question next Bank the Poonawala of Our Ebrahim Merrill

Your line open. is

Ebrahim Poonawala

wanted just one. follow I expenses on yes, up to So,

around You ratio about XX% to talked being the that. efficiency managing

flow Just going about think third in quarter. million or year-end of when costs terms at company could explicitly rate expense from XQ? the to you remind XX standalone year the we if are that us or close through we should the about How or in run in just breakaway like, of to think

Robert Harrison

Yes, tracking to while. cover been for we’ve Eric because I’ll that one ask that a

Eric Yeaman

costs dollars, the will incremental for, we the The of that through transition fourth and fourth were as expect flow we increase quarter, X million quarter. relates million in planning it to

Ebrahim Poonawala

dollars, another we and so there. once get Okay, million

there that transition kind for… So to fourth clean would it And reflect quarter, then, rate on? is of more the costs? at a from make the there in run of of all is end Or

Eric Yeaman

No. When were public when be determined next so, to first of that million that an in XX X roll addition about will million projected of XX our year. take we and go sort of we had us to million when there’ll we going

Robert Harrison

year is We and of Bob. anticipated year. some pushed We got this had anticipated into -- just this out the had next that happening things

of it. So, moved the total change, didn’t but just the timing out

Ebrahim Poonawala

ownership? date its of, for you a could lockup remind is us terms just And that BNP in expiration for last XX%

Eric Yeaman

After offering, a Sure. lockup. there’s XX-day the last

Ebrahim Poonawala

and margin following on up you deposit expect -- And sounds mean think do trend like you the about one margin the see just downside standpoint? last exist do rate margin public you question costs, higher. as it sort of high to increasingly Do you of from you some margin have in a environment, have of here? visibility degree from given to of more outlook things the seen the terms fund higher Or that the moving that you

Ravi Mallela

are very we we call still asset sensitive QX just to would we that expansion And really. Ravi. think mentioned risk, think say any a see is respect that in I in I the we position. this think as them. downside on Ebrahim, don’t We see with I very,

Robert Harrison

of as bring I so yields add see Eb, about time will And for in then, quarter quarter. basis public saw sort that costs continue some the down. that, to our would third meaningful loan will to in the we points make fourth continue reductions we deposits side increase of And XX the increase we

Ebrahim Poonawala

tax we range such expect know reset lower about investment rate as talked think from you about think as this I about year. question, XX% Do last you or? one And next to strategies portfolio efficient like, tax we and the

Ravi Mallela

to for year-to-date. we've the tell for that think the XX% holds been holds and still I XXXX, quarter, to Yes, guiding for

I XXXX think, continuing that to as opportunity. at be a for potential look we'll

Eric Yeaman

think guidance that it. Eb, was our Yes, to on and I somewhat XX% aggressive part managing we're

provide And XXXX a guidance so, looking can updated at on really still that. we're before more we

Robert Harrison

municipal still But going to sorry and credits at the on tax are looking actively credit housing actively items low to but the deals. area that, income we're low the focused housing portfolio areas looking off tax Eb, and always finish income this and two, on after certainly we're still on we've those two that bond

Operator

KBW. The next question from Jackie with of Bohlen the line comes

Your line open. is

Jackie Bohlen

How you cash an reduction of a average that to of the in level Looking quarter? view each had on quarter. the liquidity do end the normalized you by basis

Ravi Mallela

we Yes, -- is levels I absolute findings look QX. depend targeting think how for loan But as if mean flows really I I we're on anywhere think I to cash guide, want think see that those will go. at QX cash you a

Jackie Bohlen

And in some should rate versus in the at? I was had I the existing portfolio or at say, terms was that was at a of where than quarter, loan the that guess rate runoff of higher the you what that

Ravi Mallela

generally I slightly lower Jackie. think

Jackie Bohlen

Okay, is not negative from to other not so the from perspective a runoff that the rate balance you're margin? perspective than a it's seeing but

Ravi Mallela

Right.

Jackie Bohlen

lastly And a able to your you the a had planning to the are conceptual CCAR? you from standpoint, are then once discuss beholding no just capital extent you've longer be would about discussion and

Robert Harrison

Bob. is this Jackie,

we are now. As very we right prior said the levels calls, comfortable with of on capital

As we made yet. at look we separate continue from decisions haven't to yet that as BNPP, and any we'll

Operator

[Operator from Instructions] Our Brock next line Vandervliet question UBS. comes with the of

is Your line open.

Brock Vandervliet

of narrative the see, teams pretty up, that downs in thing. this that across picking group common quarter high type Let's of the terms pay competition prepayments the is

year was your still you're with confidence? that single for that portfolio. mentioned mid confident decel next to SNC You despite digits in the point your targets loan the for What

Robert Harrison

couple this of a things, Brock, So, Bob. is

touched them lot be the this we kind on. down a there national the of reasons. market. a of to where lot quarter Eric still is two got One in It's pay activity M&A think one of just I of one that happened was

and on looked the get exited. reward some that looked to the risk terms we and he and redone we pricing other at deals of The that the is conditions was, of didn't touch

more on pricing, our competitive part loan But now of on of haven’t looking that so about remain lending. also was and been focusing that always And balancing to talked smart competitive this speak us, on approach as structure. portfolio. Hawaii about which to for here market but being others what the very more in we're commercial even kind loan we disciplined So to portfolio is going maintain recently for on to have we’ll much we’re

Brock Vandervliet

how different follow-up And seeing changes pretty out? on got there. side, a call mode any wide you that terms in just of you’ve tactics your around anything is market Are competition a would as acting out in obviously you deposit the

Eric Yeaman

No, not But seeing as actually overall, mentioned other rationale than side. the call, deposit consumer It’s commercial growth I the all, one-off early rates. on costs, overall, think I the very public and it's pressure in increase remained to we’re the in pretty there’s side these where rational. reasonable time

Operator

Our line of comes next from Compass Laurie of the question Hunsicker Point.

is open. line Your

Laurie Hunsicker

the with benefit third public staying occur late occur see Did Just Is time going to deposits, the fourth? into that quarter? the X.XX. down to in reduction the going that the we’re

Ravi Mallela

Those that quarter. tend have to the maturity occurred throughout

And that one would the side quarter wouldn’t of was it so, I that weighted to -- say say the other. versus I

Laurie Hunsicker

get your And down to next year? that what to goal is

Robert Harrison

municipalities, at we’re thought meaningful to is quarter. will million we fourth assess shifts about that in will overall we’ll relationship continue $XXX as manage with and Laurie, forecasting sort continue our to to this but there. trying we we well And that funding continue point of then, overall as the needs because to really are make our manage down, the

Laurie Hunsicker

So, that’s a big drop.

mean look there. on substantial going you us and first your quarter fourth the we quarter what the margin. as the points just like? X pick day margin, we margin there’s of guidance than first ’XX think I higher I quarter But already would basis appreciate to that, help about about fourth, a the think not as Can about be So, think count. because

Robert Harrison

guiding really quarter. we’re So, first not to

we in I are able quarter-over-quarter. are liquidity this XX into kind think feel occur. And we to forward. that fact about of going confident to now. very we’ve the are that points We We right that trend be we an that’s manage sensitive our Eric reduced excess mentioned asset position basis we position. yields that that loan where going think to see will quarter, continue think we closely mentioned up and

Laurie Hunsicker

June to just zero was in then, X-X quarter premium the and your Is the March. And it amortization X-X negative to that clarify this correct? in relative make

Robert Harrison

yes. Close, yes,

Laurie Hunsicker

core you then have that number? that guidance? respect margin And in do a to Or with premium that’s your guidance, NIM is a

Ravi Mallela

ask please? Could again, that you question

Laurie Hunsicker

already day counts Yes, so sure. and other the in quarter know fourth third words, In we quarters both the identical.

that there's adjustment that no you your terms does in reflect of premium have does assumed on there. So, -- in But guide figure? what that What margin, NIM? on

Ravi Mallela

a normalized and we that's normal, Just gave of range. premium why more sort NIM,

it's hard us predict, gave really we Now, to range X basis to points so X there.

Laurie Hunsicker

quarter, that? questions. few BOLI this benefit debt in just more Okay, was there was a a outsized

Ravi Mallela

the rate There income just BOLI was rising a increase debt benefit due an and also environment. in just to

Laurie Hunsicker

And $X.X Okay. debt or? net about million benefit was

Ravi Mallela

was I about benefit think debt XXX,XXX

Laurie Hunsicker

XXX,XXX.

And million your went sorry other that hasn't just through you know then, the that substantially. other, I possibly fully income through. was down been $X.XX Okay. I And was and through quickly

why Just there? that the remind you, was drop

Ravi Mallela

income I think of fees sort you merchant I'll I'll about charges trust service non-interest that XXX,XXX. and through includes and and down do maybe is understand walk of kind card deposit and income includes be able to fees service was you'll charges quarter-over-quarter, that what

Laurie Hunsicker

other the other, line quarter? to so within the talking non-interest sorry I'm X.XX other you. versus other, X.XXX the about I'm Wait, the previous income, interrupt the in

Ravi Mallela

I see.

and really QX. driven in was equipment driven gain by of that recoveries and by that So was on sale leased decline a

Laurie Hunsicker

Okay.

Robert Harrison

There's of drivers I things a small the of couple That's Laurie. there. most in

Laurie Hunsicker

great. Okay,

better a time? right And this so is

Robert Harrison

the mean kind of flows other it it. that reason, have line Bob. during I others, is a everything The the, associated reasons else of is with Well, doesn't before that this that's kind

So that's to really hard predict.

Ravi Mallela

that right we up relatively and the of we categories. is feel quarter-to-quarter. income and pressure overall guidance, moving been onetime items their way at net, to But look sort of to that be there guess Laurie, stable. net Yes and occur things expect we relatively non-interest sort direction sort has other some best that stable I There's our to of look just the except the in for at

Ravi Mallela

volatile the add would somewhat and in there this kind other predict. that's of to only thing fees, be swap again is maybe just very there hard quarter-over-quarter Maybe

Laurie Hunsicker

you know question any buy latest last in September just thinking should to buyback, Any about as directionally May, guys a in I'm the in color bit, sale. you in capital then that? we didn't you saw active the July why I be XX. active hesitated your saw we I And you've or little mean plans, on shares obviously management and but commenting back we

Robert Harrison

Right, this and to Bob. we opportunities saw after conjunction happen over is a the into in with buyback. close every the is the was a not It's going just plan offerings of also first, have the the this in July May thought But so… and We recall overall that and and capital appropriate. month second August quarter then X, offerings that

Laurie Hunsicker

then sorry question. -- just one last And

Your around I management, I XX number? assets didn’t it’s do ask know you but an had you under a updated more? million, just have

Ravi Mallela

a moved where end of it’s little XX.X bit That's quarter. just billion the over at the

Robert Harrison

Yes. XX.XX.

Operator

Barclays. with from Matthew Keating of next the comes question line Our

Your line open. is

Matthew Keating

and the point? that’s tighter the comment low what given if to are of Just and are perspective market? the bank’s employees attract impacting whether you to that on this ability Hawaii your you at from employees a compensation labor rate wondering, doing And could maybe maintain you sort unemployment in retain the

Robert Harrison

time lows a of three It’s been year Sure. but all tight half, good tight market. a the and time. hitting quite No, it’s and it’s very last always been kind for question, over a market some

focused very are we being -- efficient. of kind we on know, you As

couple the we the raised the on of wage the we kind did of do end at recently retention compensation the over last have one last we employees years, of most things have year. of So, lowest

a about talked starting we wage we had minimum up across X, Jan bank. year As $XX this to the moved

had of those a position. stay level it’s environment creating and in to and the that’s have And as normal reducing focused always be, something positions. and them to where them people And had a higher engagement improve to want of up opportunities providing just we for impact move to well compensating the fairly turnover so, as some we dramatic work on

Operator

with of Brock from Vandervliet comes question line next UBS. Our the

Your line is open.

Brock Vandervliet

was follow-up but fees, asking I Thank a just it. other you the on covered you.

Operator

have further questions. one. time, this At showing I’m we no Oh,

We Shaw have a Securities. question with Wells Jared Fargo from

open. is line Your

Timur Braziler

This in for is actually Jared. filling Timur Braziler

kind deposit I heard voluntarily. I exited maybe think that correctly and Did one bit around you relationship? more little if relationship of that that I a correctly hear color said

Robert Harrison

was on market. Credit's our the and Yes, national decided we actually getting return that National on based deal basis. The the, risk have to the on was redone in accept

some maybe confusion, but think also the I want Eric, also commented you to touch relationship. on deposit on? Eric, there’s

Eric Yeaman

I quarter, we Yes, It know. and plan one an exit was we I In or million that first reduction something. had million that significant $XXX the it was $XXX did We the relationship. was believe reported customer. just one of were those the worked shift, where make we we meaningful It’s just to a customers, they had still had notified going a retain one-off that with the where but they pretty item.

Timur Braziler

Shared National And a Credits. the on follow-up then just

indicative else the should for we and infrastructure? story of that as part going that the of big and Given of as change on growth profile paid of they Shared National the Credits that are on expect a is something And kind activity, the to category? question, of the kind remain kind

Robert Harrison

the and will story of certainly part of part story. the It Bob. is a remain This

We that there some do relationships a operations of not. out customers with lot have good here that and have

that's clearly just evolve got of the years portfolio do So some market, manage than of strategic We will saw that that the in we we many any very now. where for as paid not continue in emphasis the half over part continue and of and on less year it. just nor see market It we're the going that's half for it that second very, merger was first shift seeing out goes, the way we're carefully time. off saw to and related have to we we to it. of But activity but be that in

Operator

back I now Thank time, call the would to remarks. I'm over you. like Kevin to no At closing for this further questions. showing turn

Kevin Haseyama

evening. want Thanks everyone and additional for if to to thank have Hawaiian. on our good We joining have me, in and contact you interest Feel again us you're a First call any free questions. today

Operator

that today's gentlemen, participations. for call. your concludes and Thank Ladies you

You wonderful may have Everyone a now day. disconnect.

First Hawaiian (FHB) 25 Oct 182018 Q3 Earnings call transcript