First Hawaiian in Honolulu restructured its securities portfolio.
The company said in a press release that it sold $293 million of lower-yielding available-for-sale debt securities at an after-tax loss of $19.7 million. Proceeds were reinvested in $293 million of higher-yielding debt securities.
The transaction should increase net interest income by about $8.6 million and expand the net interest margin by about 4 basis points in 2025.
First Hawaiian said it will recognize a $26.2 million pretax loss in the fourth quarter tied to the transaction. It should take about three years to recoup the loss.