The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

First Hawaiian profit falls on margin pressure, one-time items

First Hawaiian in Honolulu reported lower earnings that reflected margin pressure, securities losses and a special assessment from the Federal Deposit Insurance Corp.

 

The $24.9 billion-asset company said in a press release that its fourth-quarter profit fell by 40% from a year earlier, to $47.5 million.

 

Net interest income fell by 12% to $151.8 million. The net interest margin compressed by 34 basis points to 2.81%.

 

First Hawaiian sold $525.6 million of low-yielding investment securities at a $40 million loss. The company paid a $16.3 million special assessment to the FDIC.

 

The company partially offset those costs by selling about 120,000 shares of Visa Class B stock for a $40.8 million gain.

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