FHB - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Hawaiian, Inc. Q1 2021 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to Mr. Haseyama. Kevin

Kevin Haseyama

Bob And financial for quarter and results With today Sylvia. we us of Ralph you, and me our President Officer. review for are Mesick, thank Chief you, Mallela, joining everyone, as XXXX. CEO; Risk Thank Ravi Chairman, CFO; Harrison, the first

that Relations a at and in viewing our refer website our section. available remarks We have we'll is downloading prepared today. in for Investor the fhb.com slide presentation to The presentation on

be making will statements. During we today's forward-looking call,

please discuss measures. our contains may to call So GAAP financial Slide harbor safe comparable And for presentation directly non-GAAP measurements. refer X the certain over to now measurements to statement. We most turn to reconciliations this The Bob. also of these financial the non-GAAP appendix I'll

Robert Harrison

Good everyone. today. you joining Kevin. you, appreciate morning, us I Thank

Turning a and start to quick continues of and no rollout remain steady, the current well, giving the is job the in of issues vaccine daily are update cases The good to spread of on capacity. a state Slide Hawaii. the hospital COVID-XX. Overall, going I'll situation with there do new by X. number controlling

pre travelers vaccinated required the post average and state who increasing As or this of arrivals inter-island was and X.X%. case signs completed and rate of the new corresponding about X-day statewide XX dose week, that from that of recovery the was travel will period, in XX, the fully of the XX Hawaii Also the since be positivity year. X the and testing requirements. cases rate CDC vaccinated. been Wednesday, industry years of lowest steadily those X-day in per seeing the XXX,XXX exempt had have May visitor We're with Also the visitor quarantine residents daily well. on at reported Wednesday, had of average Hawaii all effective XX-day XX least states. XX% go announced the start Through and waiting Vaccine have rollout been continues Wednesday, to received have also older, XX%

price passport, in that a high economy month, to on ESG report to the adjusted download In step up it's quarter, year. Oahu a unemployment Relations visitor in was right the SASB we hopeful rate increase and we was median adopted last on this the remains $XXX,XXX, we're And available is arrivals from $XXX,XXX, condo unemployment the year's reporting vaccine report And framework, our market prior X.X% full While and state's that published strong. not continue continues website. to third the have first pleased our direction. very Investor our update, Also year. it's seasonally March, rate as remained XX% single-family at median the certainly price up improve. X% the the In home annual over will reopen, Housing the local for prior report.

go Turning our I'll X, results. quarter to Slide first briefly over

PPP Growth loans. excellent. economy by driven the and in is loans remained as brighter, by new $XXX driven originated by million, deposits. for first challenging. we PPP loans Deposits quality Credit growth local the remained quarter was While outlook the of commercial in grew $XXX getting consumer

to share. improve went over the borrowers have $X.XX, XX% metrics deferral dividend the on EPS and maintained to have credit at of Board returned was per Our continued who Diluted and pay. $X.XX

digital now strategy. turn highlighted projects our At by And completed fhb.com. redesigned financials. we on I'll over over to our few make several website, the end of significant in Ravi customer-facing I'll a comments QX, completely Finally, the it technology to the presentation, go

Ravi Mallela

Thank you, Bob.

from In processing quarter. billion, we unchanged million, leases PPP X,XXX million. originated for loans the applications grew versus and originating we Period-end balances as loans forgiveness Turning shifted over to by $XXX to Slide new loan PPP $XX.X resources loans. prior X. were $XXX QX,

a result, C&I were also were expected. balances driven slightly. quarter first Mortgage As loans, PPP balances and flooring $XXX drove by flooring strong less locally a national Originations in both million than the balances, inventories number excluding new by and loans dealer loan were the in demand decline but decline balances. up in high. for repayments $XX Strong million, depleted was on declined $XXX mainland, forgiven cars, in of the the dealer shared million down credits. and quarter,

be loan growth, we forward, the that Looking range. our view will in single-digit low excluding reiterate year full PPP,

and Turning $X.X driven ended at was prior the consumer quarter the million quarter. growth commercial billion, deposit in versus and decrease balances, from PPP to Slide commercial and This the first balances in deposit Consumer payments deposits. stimulus of benefited billion X. public in partially by quarter disbursements. increase balances increase Total million $XX.X offset a by both a $XXX loan $XXX deposit

deposits basis the Our in points basis quarter. cost to X of fell X points

quarter. Turning decrease to yields, margin to average decrease yields and million, lower XX on previous the Net Slide primarily X. loans. from was the was versus prior The million interest decrease X.XX%, a point interest basis balances Net income quarter. a $XXX.X due was average $X

in about And As to points another because the compression. quarter asset of The loans. by of basis NIM forgiveness NIM of prior applications deposits, Excess X originating of loans fee driven of in expected, points another lower significant PPP the due and quarter from NIM lower X compression. liquidity, PPP added contributed the processing first compression. amount liability basis quarter the resources prior reallocating versus forgiven to increase repricing contributed basis to PPP declined forgiven points new the loans number X from income,

forgiveness resources those processing shifted to have We applications. back

Over stimulus of X to the forgiveness the margin interest levels QX, In with net money expect persist. the to along to liquidity. loan we liquidity we cause points, basis excess decline expect PPP PPP excluding next and to X few quarters, impact

charge gain million a an $X.X a from tax reduction sale X. Turning quarter. previous from items, income million on QX liability million Slide a dues, in income. with income agreements associated to Due $X.X as due onetime million down These in was and $X.X In million, associated $XX.X $X.X activity vis-à-vis our million $X.X was was elevated. network swap $X.X which down swap. low onetime was were income related down $X.X to a unsettled the and in customer million. booked QX income was customer Noninterest million offset to contra noninterest to loans, impacts BOLI QX, QX by the including gain

half recovery rate will have based most fee pick starts increases. to merchant activity debit loan forward, growth started income tourism likely expect Looking loan low a Swap second the impacted increase as year, during as and growth to and by items environment as And fees such credit recover. further stable we low services of up. and the

We second BOLI quarter. a income in also expect recovery in the

to noninterest Given these $XX anticipate to factors, that quarter. million we will range second this the in $XX bounce million back income

approximately Turning Salaries expenses ratio to website added increased to and efficiency increases bonuses bank health contracted with new technology Noninterest care a benefits fhb.com. the the This was services. increase million, million in Slide annual by prior $XX.X $X.X the launched associated were approximately small implementation the million and its our salaries, QX, In X. the and driven $X.X costs. other of quarter. was inflationary website, million initiatives The XX.X%. quarter, and new over than higher previous $X.X in the mainly expenses

quarter, origination versus X,XXX to of help temporary million increased loans. process the In Other $X.X support we was nonrecurring. prior quarter, expenses million round support quarter. added in which addition, around onetime over of of $X.X the the PPP This led second the operating to of million to first expenses $X loans, approximately in the

turn to it expect to we XXXX XXXX, continue the quality. X% expenses year over to For over full Ralph than higher be now about And go I'll asset to expenses.

Ralph Mesick

Thank profile. Slide I'll speak you, could you turn Ravi. X, If I our to credit to

within hold the the but signs recovery credit points, our quarter XX for million, and decline, expectation. loans of than emerge. due not basis Asset The increase days of provision quarter NPAs quality Annualized, down remain rate quarter. In $X.XX XXXX. to not than due our are loans marginally starting materialized. realized Net did was a basis QX in lower prior costs declined to the to record points points. charge-offs anticipated basis to net a higher X X loans XXXX XXXX continues rate Loans XX were for were past total to quarter-over-quarter yet this to QX, decrease from of charge-off in for and XX to and low. days the continued up, XX with dropping XX the basis We has Criticized due assets past past point XX X.XX% X.XX%. points. basis quarter,

Our return of those reperformance has deferrals continues to very related COVID been be strong experience good. loans and to and payment

recovery amounts The $X.X to quarter reserve X.XX% roll our XX, the to And of million of forward $XXX.X year, as in a of million. PPP the second to the unchanged. bank This we COVID-related disclosure reserve. the a of Slide view was loans component overlay the net of by all Moving retained about decreased Maintaining loans. segments. economic and allowance for half the a X.XX% outlook for the see our

of quality asset for factors changing losses outlook. drive is metrics us it before strong, expected the remain evidence that that X encouraged for looking we're or improvement next our quarters, monitor over While important credit to X

portfolio to Turning of show of the We by quarter Slide rating risk the commercial XX. composition as end.

the down on these loans from on The efforts each loans and loans. the basis points the by reductions loans specific a criticized $XX are million upgrades. from in XX at credit a or intent executing reported XXX combination down repayments, points $XXX Special or to with we've million at continue manage reduce decrease a end QX of for peak, XXX sales, seen of QX, loan future credits to peak. come risk million or We and costs mention peak basis classified refinancings Since basis have of plans are the points. of $XXX

status Reperformance be deferral of with pandemic. loans loans to secured deferral have considerations. residential at balance returned or XX, the payment on this XX% of of are strong, Around that those of under About have to a by continues have most Slide the low. on At XX% small period. point, the second completed based rates deferral the modification received we Finally, borrowers see start are loans deferrals delinquency additional portion mortgages. a that these offered

turn to me presentation let Now the back Bob.

Robert Harrison

Ralph. Thanks,

say and into investments, about up, they wrap a our to I our technology I few words how Before wanted digital strategy. fit

perspective, XXX a digital over we to a creating customers, as of had to infrastructure we deep and data access, costs with technology In a at and the relationship use plan can lasting creating to it to changing years So and financial scalable, deep and platform when down our we trusted look over personalization. the will to From convenience evolve how With and while an relationships, of to hub Page bank portable enable experience what continue will lives. that be to transformation, if improve go this, drive customers' our relationships us our we means adviser served through you expectations. and to digital meet customer their is area, we've history, you a becoming build lasting to XX, rethink time.

and sources. digital customer-facing quarter, Built calls, and replacement. work open to services We out platform, management As as a consumer we we've website, the origination on our platforms data will continue on flexible tool. projects. backbone integrating prior framework, fhb.com modular system discussed financial us a reimagined core it more completed personal refreshed serve several new micro on a a a introduced that first to we online allows rolled In and API approach and loan a our

it application, new our Kevin. coming days. and experience which innovative to launches in of the and and enhanced for it development when completed brings With the us banking ability new back tools to that, budget and functionality, mobile personalized deliver advice we finance to turn access I'll Additionally,

Kevin Haseyama

take we'll now. questions Sylvia,

Operator

[Operator Instructions].

from Your America. of comes Ebrahim the line first question from Poonawala Bank of

Ebrahim Poonawala

to Ravi, I when X around like is, X decline. guess, us if Can with to points outlook does when core X-point first X rates off, begins point margin you for level decline? moderate just question, that basis tell to stay the as the basis that

Ravi Mallela

per the sheet. start quarter. runoff, bit more little to if I That's about on And and is start one replenishing month of little a of probably this were, at QX yields the portfolio the the points securities with a particular. we the bit we X We $XXX got you X rolling we would I'd to of Fundamentally, moderation see basis we has as in some yields aspect. room kind sheet respect like as those. at in bit NIM. for this that balance a room. to Mortgage our moderation kind extremely the our book for got in active see activities for little some the repricing We're of some the in spreads balance side, refinancing probably been on in $XXX look Ravi. are, see there's mortgage securities $X.X of Ebrahim, where in the at see points, already could say to We're feel a we bit on room book room. We've to little of And of a X just of off decline level. million Depending deposit we million the where maybe billion say, where see are quarter. and could basis quarter. Yes,

opportunity kind where term. the long of land NIM probably to sort see there's of So there will for

Ebrahim Poonawala

timing Ravi, when that remaining get you PPP the of expect what's fees, what's And it's And going to you the amortized? think recognize? to

Ravi Mallela

$XX to million Yes. It's $XX about million.

Robert Harrison

through is before, as EP. million, $XX on the go have over just we process, straight-line them we Bob. amortization. And said as we've It's This

forgiveness. gets that course, Of accelerated with

So through that last -- from in process, the this be as the borrower next dependent. it's happen of year a the months. forgiveness lot really But go really round first year will will we probably XX

not it's control. we So something

Ebrahim Poonawala

much breakdown? the second? is have first how Do And that, Bob, you versus

Robert Harrison

Kevin, we that, can for handy? that have have but that don't you on do I work you.

Kevin Haseyama

the round of around million $XXX new was second Well, loans.

Robert Harrison

fee... He's about the talking

Kevin Haseyama

don't I right Sorry, have that now.

Robert Harrison

We'll with to EP. back that, get you

Ebrahim Poonawala

separate That's on loan. dealer on a note fine. And finance the

us drop-off in come surprising. et your back, business few Just of headed does see Bob, quarters? with the inventories, that I wasn't in on auto next sense what's it where going guess terms cetera? the outlook given you So there, What's of a give

Robert Harrison

be of Sure. And to couple time a in I'm lot mainland more talking a I've to to going spent up them. of talking of the them. weeks,

our And right If than outstandings $XXX you look at $XXX right the were X-year we're million. about million XXXX, now, average in that. ended less

same for the some while a on there's lines, size. and amount take of room the been there's growth. tremendous So And give essentially

we other in supply really certainly in recovery by which, get of But ship can that strong a is and dealer as back some expect out, year-end. pretty of driven manufacturers can't produce it we volume, flooring up And to course, So when come speed and shortage predict. bottlenecks expect balances. before worked

Ebrahim Poonawala

it. Got

manufacturer. that think -- of you depending then or $XXX So by may with the of year, end And gets return $XXX the the you do may some to million that on million back up. not year, picked X this

Robert Harrison

Sure. us. by It's really It's driven not driven manufacturers. by the

lot keep think things broader that would of and I low economy. start dealers will inventory, like the course, Of change but to sell well to dynamic a cars as the as normalize in

Operator

Alexopoulos next line question Steven JPMorgan. Your comes the of from from

Steven Alexopoulos

I Bob, to wanted start.

the they increased look customers on you move bit The with today? investment? How to economy are describe making they I if rate So unemployment amongst are economy, state still the business at for is to improving. really would Hawaiian waiting open? high. more Or forward a Visitor vaccines. arrivals starting spending good is and are And fully progress sentiment still

Robert Harrison

make that they're at don't to ready know decision where the yet, we're point if I Steve.

think people at opening itself they little restaurants, little There soon. even will has But to high well strongly absolutely those really have there's really more places, and some have many armor candidly, out to that to. that to thing. reengage rate able The are few to of go. people tourists. are folks, and bit a they're of I fairly a shortages that it reduced trying those kinks just reopen tourists, to I hotels again, the serve in sort to and Like work Talking a struggling as they're ready talked lot are rental unemployment out, go. been to all think to be happy work that ready though capacity, cars there find

reopening that the I through think at will the getting then and be looking step. investments, next So

Steven Alexopoulos

it. Got

That's reserve, well Okay. when at of expect were no question the the still you we And is reserve helpful. taken after up releasing amount? the where day the provision My we quarter. to meaningfully X the what day in you closer X look pattern The so CECL CECL. held had should this we is no And above quarter? more for provision gets until reserves reserve

Robert Harrison

Bob, start, very on there's hand recovery a early still here, off yet. I'll bit Steve, is and a -- call I'll indications while this talked Really, a for just lot it good in to signs we're to Yes. as the looking Ralph. of is, we're it's economy the looking think we what about, And I little are make Maybe those for.

like better So idea on to you'd the I over think a Ralph, But have add? quarters, anything of couple we'll that. next

Ralph Mesick

Yes. I don't a add. Steve, more have lot to

we hoped starting that see recovery, in of think I this that the was I line and takes to see see second couple way what half need if outlook that really would. and think really our up to quarters do it everything a for to the next had mean we're But just starting I And now. we happens is hold.

Steven Alexopoulos

And share any there bank? as helpful. were into And that bring guys are loans, then relationships to able you That's of versus the these use customers? have Okay. in new for of existing how on tool the many terms been steps PPP you a new to could

Robert Harrison

done some that. of We've

have We large a customer base.

that's to and different the I less. a than have servicing think, that the think And the And gotten little us. terrific loan where bank to country. bridge to Hawaii. quite some really goes some We've a in customers get in relative I rest was the so borrowers But loans, majority other them think into borrowers for been we to, of the the -- economy that a that's been were frankly. of And I side number of we're had been were national seeing our time with with our the has just existing that. new bulk saw first for PPP the of this. of numbers relationships PPP struggling, Interestingly, a came the people is second our There round, already new of

Steven Alexopoulos

on Okay. And That's personnel one last helpful. just related. one

big Dods, promotion running I Chris planning was get the as so to backfill of him been he will happy I've a his now? So digital fan continue prior role Or the COO. Are to see you transformation?

Robert Harrison

in the no, He to He's But work added I his great ethic. responsibilities. I so careful room, -- a say, I just be what we have has to Steve.

wrap sure working it that just -- no, the be all really the still I had will make transformation want he they're all digital of result And not that around what better and sure integrated digital full get end and operations, suite to the Chris to transformation. only to of So make at the technology, to that. tools do comes down we'll a on is because

Operator

question comes from line next KBW. Bohlen from the of Jackie Your

Jackie Bohlen

wanted would to their in portfolio expectations. some and performance balances as and portfolios the consumer go just you the Understanding just and other I pulls growth have commercial behaving talk loan expected. reiterated the pushes Are the about to back and of versus guidance. overall

Ralph Mesick

Yes. a And expected we're just saw I have We a doing side. working really deferral. And of payment. would good something say of lot up as a statistics consumer on slide, had see not in that. on lot I We modification to better people would return place. the program. a from see the really stood people in on we didn't second the we can you We think than putting had

So I doing better-than-expected think we're there.

Robert Harrison

was question? growth-related And sure, it was this was just Bob. Or is your Or question? it to I credit-related that Jackie, a a question? want make

Jackie Bohlen

credit It component. was I to to but related, growth get the going was

order. reverse just it'll my So

Robert Harrison

sure. Yes,

been aren't the We take loan muted demand a seeing space. in We're growth, then, over for unless Let consumer is outperformed? Ralph. the other as you been has have sales been some lending, periods. that than that there very a of just me side level a growth year. else Besides it auto lot Ravi, residential other think, previous in that strong, last had in seeing but anything question indirect But lower I has at than, have is car even that

Ralph Mesick

it. think No, I covers that

Jackie Bohlen

Okay.

Or that portfolio? in there some function that And function purely is of a demand? consumer is runoff of so is intended the decline, occurring

Robert Harrison

not bit, there but portfolio. balances the different categories. a We of of in couple any down that demand, Primarily a the existing broadly segments little portfolios, really of of bringing but subsegments certainly are were

Jackie Bohlen

largely not still Okay. major a a know you that And driver. that's there? headwind? -- does I is are complete it a And curious. more little of I'm Or just bit

Robert Harrison

Absolutely. very No. fair A question.

to think and we're be, it's we be demand much want I to now driven. going more where

Jackie Bohlen

portfolio single contraction Okay. related other of to is and But and some seen other else what there? good anything may mix have just you maybe there quarter. some little family. Was And banks? banks, then just that a been purchased you play versus Or expansion put curious, the a the in that is lot I've touched on than different at had the the in

Ravi Mallela

in level. say that sales portfoling one absolute Jackie, this refinancing business QX. both the of is was would a and from had perspective. looking mortgage extremely an lower activity just a We mortgage the certainly that have components the we're purchase in Ravi. I quarter, the now levels been from more Certainly, forward, in on just high, and activity

we to As for to start we good future. see through us origination opportunity balances in build the really to move potential continue pipeline, the

Robert Harrison

a just Bob. that. on point maybe is And This finer

So with several just we're think the year, slow opportunities, in But supporting help refinance a of large because do will projects half at projects we this of us loan and will that point, year. are the condominium rates some later the where that have at. we back bit

Jackie Bohlen

year-end. I of just happen quick Do number it got Okay. my That's Ralph. notes just was for helpful. now? that the last probably have you the that of a And general reserve you, follow-up to one at then have XX% a I one. or overlay place

Ralph Mesick

the about level. It's same

Jackie Bohlen

Okay.

So no change.

Operator

Andrew question the Piper Liesch line of next Our from Sandler. comes from

Andrew Liesch

liquidity. points, on just impact question down to PPP the the margin X and of X One guidance, basis excess excluding

points X this you points highlighted that X the basis excluding quarter. for that basis and is the So

add and points? to X take should X then basis we back that So the in out

Ravi Mallela

in operating round Excess through. the we bit and state now, exclude those liquidity give increase of where what a to we sheet liquidity of in could But account, had state excess two Andrew, NIM, seen much on kind respect on the in the potential color of the balance we potentially the given in those terms account And haven't opportunity the to happen future. of right there's impact we I'll stimulus how next Certainly, come components. liquidity. little what's does with It terms are with components. could maybe of each that maybe operating since particular, of over have time respect

some to there's loans, forgiveness. could the the liquidity on to experience So uncertainty focusing over couple back next excess quarters. certainly PPP amount on of -- of On going we're we back

to we next of the so on And extent couple uptick sort an margin that a forgiveness of picks the of the up in as see that. also quarters, could result

X are basis that some those So have of the uncertainty X for future. sources X the factors outside of are the that to points

Andrew Liesch

it. Got

state with I than stronger than have especially think what you expect, to Okay. the thought to the million That's I guidance $XX tourism range quarter, not fees $XX is return seeing million at could fee you up range. you that conservatism closer a do providing? that you're in to I reopens in quarter, you income this come I there? if fourth would the noncore some what sort actually helpful. and be? $XX And I the were rebound the million. income back guess of I Or stronger in might guess the could million of to $XX -- to items have then are back would third fee might coming the of closer

Ravi Mallela

couple I'll an hit That's excellent items. a on question. Yes. of Maybe

book. question, contributed we portfoling terms about the $X to million on income in the That in are a mortgage loans certainly of think I difference quarter-over-quarter. noninterest previous

that just that's time those a ways service liquidity There, as respond particularly a some amount sort the and what we're I muted area. I'd debit that of effect in a to effect fees because charges that just a service recovers. many tourism the on from kind say and seeing. we're on but would on the credit that we in a but of deposit lot from over credit thinking certainly, line muting to card so And have about activity have tends fees, just And of tend of fee on accounts take liquidity. bit levels, will be maybe muting benefiting say in balance charges. customers time, will And that And as sheet. perspective, deposit significant result, a little

put we've pieces you given together, that's of when those the XX% XX% Andrew, to all So kind why guidance.

Andrew Liesch

Got it.

helpful. very That's Okay.

Operator

Instructions]. [Operator

next Fargo. from question the line Jared Wells of comes Your from Shaw

Jared Shaw

guess going investment, on of this centralized out -- and on this the X -- plan. the at be best on Or together in end? you tech I back and going the having Are each then looking go tech the under things aggregate to option So provider? get planning is

Robert Harrison

Jared. It's This honest Very good Bob. question, answer, is complicated a to be you. with

number have FIS. outside we around core a different core we Around that them, core of provider We that does services. systems that's have our X provider and And that use from providers.

somebody else. years has our and is ATM For example, many, been our credit card driver many TSYS for provider

that for and But streamlined X quite API other isn't no, seamless. moving to we technology to bit new doing it not we're simplifying core, it make And that monolithic. that we it our around a just everything provider -- wrapping and systems it we are the have while core world is it's So very by use. with and microservices do

Jared Shaw

those forward, have Or you need microservice-based systems, in-house? depend those will be products on here changes? or will then implement tailor And you you make going help able partners to still when or to to tweaks there

Robert Harrison

going a combination to be It's of both.

you a offering services their advantages is using, much generally easily. that And the how then you relatively architecture for of want you're to out micro have customize. of you that choice of providers the what swap can One

offerings. system benefits something you the of is for the have so of the And wait customization that different versus maintaining the creating of and to each one cost customized

Jared Shaw

Like in having left. see have we the the full mentioned had island left? people part on Is areas sufficient the the Are that are back? And Great. increase? Or more to labor still Okay. to then the the tourism-facing a back the wait may the and coming more hourly just Or to coming it? reopening to returns. past, in handle or on that you pool depend they wages reopening tourism at pool broadly had the market will people of

Robert Harrison

to clarity perfect that, honest have don't with be I you. on

people some think I might have left.

in exodus I government been big you've provided, think we when it support to wouldn't But of to people visitors. people think shots been, from work -- so be where a back XX getting to support Remember, programs go return think help I the get places, want to able too to I million soon And various had and wasn't that's to those somewhat been help don't seen large fairly to support of other the vaccine reluctance lot return an a economy. as there's of part in work is them. are are point in And first. that to tourist reluctance programs their there a XXXX has ago for we a place. the long

same I Time while. And get all that the dynamic so economy. a this happening and full will make really employment with a tell early call. as we're robust to back we at for to time, think tourist good Too

Operator

[Operator Instructions].

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

Laurie Hunsicker

to wanted this reading I Slide I'm right make on just sure XX.

that that's of down total million $XX for deferrals the the plus bank, correct? deferrals at last from Looking original your $XXX million of quarter. adding Is the an subsequent on

Ravi Mallela

slide you're talking Let's the see. as I'm about. pulling up

Laurie Hunsicker

Yes.

and million. So deferrals then total are at million at $XX the subsequent deferrals $XX at looking I'm now the original showing

So just $XX million versus.

Ravi Mallela

correct. That's

Laurie Hunsicker

That's fabulous.

expense Okay. Great. -- wanted just go back I then, guide. I to to Ravi, And

to year. you're up reiterated X% a last looking So you at still relative

at I quarter, going for $XX you're then $XX million, what that help us you're just the to this strip Can but think per quarter XX.X%, running about at am quarters. nonrecurring, million Or missing? or so we you you're next if to that's the suggesting down If that? look out you few be

Ravi Mallela

Yes.

coming through in as We move it going up certainly the to mentioned we the kind tends you some elevated start future. activity in year. line little the bit season. see things to see and holiday at of as a go continuing get me because to in Let to we look arrears, of kind in over call, we the items be reward increases the previous where see, we're QX off course of to expenses I card

levels lower go typically year, we of the in increases, see up. the as QX, for but activity those So rest numbers could will

implementation We're balance have of of the to demand to we've probably sheet we increase talked levels, QX depreciation expense things to incentive forward be bit Hope And those the talked half to will bigger kind And time. the we as implemented, of in little expenses you looking should to about support in the will balance too. in and and some some will the made advertising related our over we've marketing over about look as put our course over then sheet. in of the where second website. that think means up from we refreshing as applications increases bit. what core given look investments around comp are And to in new mobile some support a of year, And see we and sort see application, guidance that a the core. will expenses technology the that that But I increased of fhb.com. as helps. the we've at and these anchor as as being cause then We're a we'll regulatory continue And We think application. our expenses you the expenses new sort expenses time trading fees, of little as loan technology the we've And also. we currently. new pick increase move bigger I are the also have result, then process going regulatory to of expensed. a up we mobile

Laurie Hunsicker

for helpful. that's about rate we year? Yes, think How tax next should

Ravi Mallela

Yes.

So of currently in the in What we think taxes, a tax is credits think our a quarter. particular, [indiscernible] pretty XX% rate in have tax I our was below rate, is little I terms tax strong bit portfolio. our

think if dollar sort an of So you offset tax tax to expense. about that as credits level absolute of

look As frankly, increases, the we're going up, future start activity increases demand we the to see picks firm. of to the and loan in to performance

But very sort against that credits an when base, see And more tax we're manage closely. line going good pressure revenue to amount increasing to to about so at on of earning thing money. because the think fixed that's the certainly you're of rate tax you looking a try We're a forward. a going

Laurie Hunsicker

question. just Okay. Great. last one then And

fees can And I just and was you And million. last $X.X the the for appreciate you think the this I X%? And you've the level the But have was On fees, PPP quarter? between the about help Slide if X given. clarity in and PPP what the forgiveness? were what split had us was I just PPP what think fees quarter of

interest in Just to quarter? was net wanted for income what the this know breakdown

Robert Harrison

ahead. yes, please, Ravi, go So

Ravi Mallela

Yes.

I'm Laurie. if see question correct, me that getting Let

the asking fee in quarter? the forgiveness and breakdown You're about income between

Laurie Hunsicker

forgiveness that specifically, work amount dragging focused way. but the Well, Yes. the versus most which was other on I'm on going the what X%, margin, your is what is obviously forgiveness is to

$X.X quarter, forgiveness but amount I quarter? believe could last last And So was was have in the million, what it wrong. quarter's this it for

Ravi Mallela

Yes.

million $X.X have is So last billion. estimated what $X about quarter this in quarter bit I in a little was $X.X over million, forgiveness. And

Laurie Hunsicker

million? I'm sorry, $X.X

Ravi Mallela

million, yes. $X.X

Laurie Hunsicker

$X.X million. Perfect.

Operator

any I at questions further further show time. no there this remarks? Are

Robert Harrison

saying your everyone, by joining Hawaiian. us. First additional thank if a weekend. any Have me interest questions. you, good have Please contact We feel up thanks, appreciate in wrap just for you I'll free Sylvia, and to

Operator

this Ladies today's you your and for gentlemen, participation. does conference. again conclude Thank

all now may You disconnect.

First Hawaiian (FHB) 23 Apr 212021 Q1 Earnings call transcript