Earnings call transcript: First Hawaiian Inc posts strong Q2 2025 earnings beat

First Hawaiian Inc reported a robust performance in its Q2 2025 earnings, surpassing Wall Street expectations. The company posted an earnings per share (EPS) of $0.58, beating the forecasted $0.4887 by 18.68%. Revenue also exceeded expectations, reaching $217.54 million against a projected $213.87 million. Following the announcement, First Hawaiian’s stock saw a premarket rise of 2.14%, reflecting positive investor sentiment. According to InvestingPro data, two analysts have recently revised their earnings estimates upward for the upcoming period, suggesting continued momentum. The company, with a market capitalization of $3.17 billion, has maintained dividend payments for 10 consecutive years.

Key Takeaways

• EPS of $0.58, an 18.68% surprise over the forecast.
• Revenue reached $217.54 million, surpassing estimates.
• Net income increased by 23% quarter-over-quarter.
• Stock rose by 2.14% in premarket trading.
• Strong performance in net interest income and margin.

Company Performance

First Hawaiian Inc demonstrated a solid financial performance in Q2 2025, with notable year-over-year and sequential improvements. The company’s net income rose by 23% compared to the previous quarter. This growth was supported by a $3.1 million increase in net interest income, reaching $163.6 million. The net interest margin also saw a slight uptick to 3.11%, with expectations for further growth in the upcoming quarter. The bank currently offers an attractive dividend yield of 4.09%, significantly above industry averages. InvestingPro analysis indicates the company maintains a FAIR overall financial health score of 2.23, with particularly strong marks in profit metrics.

Financial Highlights

• Revenue: $217.54 million, exceeding forecasts by $3.67 million.
• EPS: $0.58, an 18.68% beat over the expected $0.4887.
• Net interest income: $163.6 million, up $3.1 million quarter-over-quarter.
• Net interest margin: 3.11%, with an anticipated rise to 3.13% in Q3.

Earnings vs. Forecast

First Hawaiian’s actual EPS of $0.58 was significantly higher than the forecasted $0.4887, marking an 18.68% positive surprise. Revenue also outperformed expectations, with a 1.72% increase over the projected figures. This earnings beat is notable compared to previous quarters, indicating strong operational execution and financial management.

Market Reaction

Following the earnings announcement, First Hawaiian’s stock experienced a premarket increase of 2.14%, with shares trading at $25.74. This positive movement reflects investor confidence in the company’s ability to exceed earnings expectations and maintain growth momentum. The stock’s performance is within its 52-week range of $20.32 to $28.80, suggesting a stable market position. InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued, trading at a P/E ratio of 13.07. Investors can access detailed valuation metrics and 12+ additional ProTips with an InvestingPro subscription.

Outlook & Guidance

Looking ahead, First Hawaiian anticipates continued growth in its net interest margin and expects full-year loan growth in the low single digits. The company projects fee income to remain steady at $51-52 million per quarter and foresees a slight increase in expenses by about 2% in Q3. The effective tax rate is expected to be around 23.2%.

Executive Commentary

CEO Bob Harrison commented, "We’re not adverse to considering options, but we don’t have anything we’re looking at currently," highlighting a cautious approach to expansion. He also noted, "The consumer at the lower end is getting a little stretched," indicating potential challenges in consumer segments. CFO Jamie Moses added, "We should see some loan growth in the back half of the year," reinforcing a positive outlook for loan performance.

Risks and Challenges

• Potential consumer financial stress, particularly in lower-income segments.
• Economic uncertainties that could impact loan growth and interest income.
• Competition in the banking sector, which may pressure margins.
• Regulatory changes that could affect operational costs and strategies.
• Dependence on Hawaii’s tourism sector, which, while growing, remains susceptible to global travel trends.

Q&A

During the earnings call, analysts inquired about the normalization of dealer floorplan growth and the strength of the construction loan market. The management addressed these concerns by highlighting stable commercial loan spreads and improving yields on investment securities, indicating a resilient financial strategy amid market fluctuations.

Full transcript - First Hawaiian Inc (FHB) Q2 2025:

Jonathan, Conference Operator: Thank you for standing by and welcome to the First Hawaiian Bank, Inc. Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. As a reminder, today’s program is being recorded.

And now I’d like to introduce your host for today’s program, Kevin Hassayama, Investor Relations Manager. Please go ahead, sir.

Kevin Hassayama, Investor Relations Manager, First Hawaiian Bank: Thank you, Jonathan. And thank you everyone for joining us as we review our financial results for the second quarter of twenty twenty five. With me today are Bob Harrison, Chairman, President and CEO Jamie Moses, Chief Financial Officer and Lee Nakamura, Chief Risk Officer. We have prepared a slide presentation that we will refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the Investor Relations section.

During today’s call, we will be making forward looking statements, so please refer to Slide one for our Safe Harbor statement. We may also discuss certain non GAAP financial measures. The appendix to this presentation contains reconciliations of these non GAAP financial measurements to directly the comparable GAAP measurements. And now I’ll turn the call over to Bob.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Thank you for joining us today. I’ll start by giving a quick overview of the local economy. Statewide seasonally adjusted unemployment rate continued to drift lower and was 2.8% in June compared to the national unemployment rate of 4.1%. Through May, total visitor arrivals were up 2.8% compared to last year as the strength in U. S.

Mainland arrivals more than offset weakness in the Japanese and Canadian markets. Year to date spending was $9,000,000,000 up 6.5 compared to 2024. Interesting to note, we went back and looked and for the first five months of twenty nineteen to the first five months of twenty twenty five, visitor arrivals are down still 3.9%, but the spend is up over 24%. So while there’s been a few less visitors, the spend is up substantially. Turning to slide two, we had a very strong second quarter.

Our net income increased over 23% compared to the prior quarter. The improvements in our results compared to the last quarter were broad based, driven by higher net interest and noninterest income, good expense control and lower provision expense. Our results also include the impact from a change in California tax law that resulted in a net benefit of $5,100,000 Turning to slide three, the balance sheet remains solid. We continue to be well capitalized with ample liquidity. Loans and deposits were stable during the quarter and we repurchased about 1,000,000 shares at a total cost of $25,000,000 We have $50,000,000 of remaining authorization under the approved 2025 stock repurchase plan.

We resumed reinvesting the investment portfolio cash flows in the second quarter, and we plan on maintaining the portfolio balance at its current level. Turning to slide four. Total loans increased about $59,000,000 or 0.4% from the prior quarter. The largest increase was in the C and I portfolio, which was primarily due to $125,000,000 increase in dealer floorplan balances. This was largely offset by payoffs from several completed construction projects in our commercial real estate portfolio.

Looking forward, we expect full year loan growth will be in the low single digits. And now I’ll turn it over to Jamie.

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Thanks, Bob. Turning to slide five. Total deposits increased slightly in the second quarter as growth in public deposits more than offset the decline in commercial and retail deposits. On the retail side, they were down $23,000,000 in the quarter, and commercial deposits were down 127,000,000 The decline in commercial deposits was due to the normal operational fluctuations that we see in that book. Total public deposits increased by $166,000,000 all in operating accounts.

There was no change in the balance of public time deposits. Total deposit costs fell by four basis points in the quarter and our non interest bearing deposit ratio remained at 34%. On Slide six, we see that net interest income was $163,600,000 $3,100,000 higher than the prior quarter and the NIM was 3.11%, up three basis points compared to the prior quarter. The increase in the margin was driven entirely by lower deposit costs, primarily due to CD repricing. While we didn’t see the anticipated benefit from fixed asset repricing in the second quarter, the underlying balance sheet dynamics driving the NIM remain intact, and we anticipate that the NIM in the third quarter will increase a couple of basis points to 3.13%.

On to Slide seven, where noninterest income was $54,000,000 in the quarter and benefited from a few items that went our way. We continue to expect that recurring piece of noninterest income will be about $51,000,000 per quarter. Expenses were better than expected in the first half of the year, but we expect them to tick up just a bit in the back half. We think expenses in the third quarter will be up around 2% on a linked quarter basis and that full year expenses will be better than originally expected at around $5.00 $6,000,000 And now I’ll turn it over to Leigh.

Lee Nakamura, Chief Risk Officer, First Hawaiian Bank: Thank you, Jamie. Moving to slide eight, the bank continues to maintain its strong credit performance and healthy credit metrics. Credit risk remains low, stable and well within our expectations. We are not observing any broad signs of weakness across either the consumer or commercial portfolios. Classified assets increased by $31,600,000 on the quarter.

These loans are well secured and we continue to work closely with the borrowers. Quarter to date net charge offs were $3,300,000 or nine basis points. Year to date net charge offs were $7,100,000 Our annual year to date net charge off rate was 10 basis points, one basis point lower than in the first quarter. Non performing assets and loans ninety days or more past due comprised 23 basis points of total loans and leases at the end of the second quarter, up six basis points from the prior quarter, resulting from an uptick in non accruals. Most of these were residential loans with low loan to value ratios, so we feel that the loss content in these loans is very low.

Moving to slide nine, we show our second quarter allowance for credit losses broken out by disclosure segments. The bank recorded a $4,500,000 provision in the second quarter. The asset ACL increased by $1,200,000 to $167,800,000 with coverage remaining flat at 1.17% of total loans and leases. We believe that we continue to be conservatively reserved and ready for a wide range of outcomes. Let me now turn

Tamar Brahzylar, Analyst, Wells Fargo: the call back to Bob for any closing remarks.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Thank you, Jamie and Lee. And I’ll be happy to take your questions.

Jonathan, Conference Operator: Thank you. And our first question for today comes from the line of Liam Coonhill from Raymond James. Your question please.

Liam Coonhill, Analyst, Raymond James: Hi guys, Liam on for David. Thanks for taking my question. Just wanted to start out with C and I driving growth in the quarter and taking into account the low single digit outlook moving forward. How is the pipeline in terms of C and I? And is that the largest contributor?

And I’m also curious on the CRE side, are we seeing increasing demand from those borrowers? Appreciate any color you might have. Thank you.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Sure. Good question. Most of the C and I growth came in our dealer floor plan and we have seen that pretty much continue to normalize back to what we had thought it would. Right about $600,000,000 let’s see, $786,000,000 for the quarter at the end of the quarter. And that’s up about $125,000,000 from the previous quarter.

So that moves up and down. Car sales have slowed a little bit, but still there’s uncertainty out there with respect to tariffs. So I think they’re just, we don’t know exactly what’s going to happen with those balances, but we don’t think they’ll move around a whole lot. As relates to commercial real estate, the thing there was that we had thought some of the commercial construction loans were going to extend into mini perms and they didn’t, which is a sign of very good credit quality. But on the other hand, it’s a bit of a challenge for balances.

So we still have a lot of those loans that are funding, that work is still going on. It’s a little bit harder to predict when those will get paid off. So we changed our guidance a bit from low to mid single digits to low single digits for the full year, just in anticipation of that.

Liam Coonhill, Analyst, Raymond James: Thank you. I appreciate that. And you touched on tariff impacts. Have you been seeing that net out with the improvement in tourism spend on the islands? Do you think it’s kind of a wash between the two factors or has that increased tourism spend kind of outpaced tariff concerns at this stage and adding softness of concerns versus last quarter?

Thank you.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Really no change in the the only impact we really see for tariffs is the uncertainty it gives our car dealers. That’s still not exactly sure what those tariffs will be. I don’t think it’s had much of an impact on tourism. Japanese and Canadian tourism is down. I think primarily for the Japanese, it’s a little bit slower economy and their exchange rate is still fairly weak for them.

But US West and all of the Continental US has been strong and that’s what led to the increase in arrivals and almost certainly the increase in spend.

Liam Coonhill, Analyst, Raymond James: Great. Thank you. And just last one for me. See the repurchases of some shares in the quarter. Just wondering what your capital priorities are at this stage as we move into the back half of the year?

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yeah, I mean, think our the capital priorities remain the same. We’d love to deploy that in organic growth areas. Wanna make sure our dividend is stable. And the third option there is the share repurchases. And so, I think that’s where we’re gonna end up deploying more of our repurchase authority in the back half of the year.

And so, think that’s probably where we’ll end up on that.

Liam Coonhill, Analyst, Raymond James: Great. Thanks for the color. I’ll step back.

Jonathan, Conference Operator: Thank you. And our next question comes from the line of Andrew Tyrrell from Stephens. Your question please.

Andrew Tyrrell, Analyst, Stephens: Hey, good morning.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Good morning. Good morning.

Andrew Tyrrell, Analyst, Stephens: Maybe just to piggyback off of the last question around capital priorities. I mean, so I’m looking back, your capital position is stronger than it’s been in a while. You’ve got a lot of capital. The loan growth outlook is maybe a little

Tamar Brahzylar, Analyst, Wells Fargo: bit

Andrew Tyrrell, Analyst, Stephens: lower following this quarter. I’m curious how these things play together into your thought process on M and A and whether M and A makes more sense for you guys at this juncture. And maybe if you could just kind of update us your thought process there and if it does or doesn’t make sense for you?

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Sure. This is Bob. I think that’s something we always look at. We’re not adverse to considering options, but we don’t have anything we’re looking at currently, but we’re always out there talking to people as far as potentials for doing things with our capital. We’re very comfortable with the capital levels.

It’s a little bit higher than we had guided to in years past. It was closer to 12%. We have increased the allowance. We do think there will be a rotation as Jamie was getting to out of securities and back into lending. And when that happens, that can eat up the capital fairly quickly.

So we want to make sure we maintain enough capital for loan growth.

Andrew Tyrrell, Analyst, Stephens: Yes, makes sense. And maybe just one for Jamie, going back to the comments around the margin, and I appreciate the guidance for 3Q, that’s helpful. What impacted, or anything we should be aware of that impacted loan yields in the second quarter and kind of mitigated what I thought would be a little bit better in kind of fixed repricing? Just any color you can provide on the underlying dynamics there would be helpful.

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yes. So I think, Andrew, it was really a mix issue. So we you see in the materials, had sort of large payoffs in the construction book and increases in the C and I book. And so there was just this timing, I’ll call it a timing differential, where we had higher margin loans pay off and they were replaced by relatively lower margin loans in the book. And it was really a mix issue there.

I think in totality, that story still remains the same that the fixed rate cash flows coming off the books replaced by higher yielding assets in general will drive the NIM higher over time. Just of a weird quarter in terms of the mix of those things at the moment.

Andrew Tyrrell, Analyst, Stephens: Understood. And if I could sneak one more in, I think you talked about 51,000,000 of fee income is kind of a core number. It seems like the kind of credit and debit card fees and service charges that were both up this quarter, it seems like there’s normally a carry forward of strength in kind of the third quarter there as well. So I’m hoping just to clarify any is that kind of just like what you view as core longer term? How should we think about third quarter on fee income?

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yes. I think fee income in the third quarter is somewhere in that $51,000,000 $52,000,000 range. I mean, I think that’s probably where we’ll be. Have from time to time, we have a lot of things that happen from a, let’s call it a markets perspective, where we have to revalue pension obligations, BOLI obligations, that kind of thing. So when the market’s up quarter over quarter, we have small pops in these numbers.

And so we had a number of like, let’s call it, onesie twosies type things happen in this quarter in the $2,000,000 ish range that we know happen, right? These things happen for us from time to time. It’s just hard to predict when they’ll happen. So, that $103,000,000 range, I think is probably a good number for where we’ll be in the third quarter.

Andrew Tyrrell, Analyst, Stephens: Great. I’ll step back. Thank you for taking the questions.

Jared Shaw, Analyst, Barclays: Yep.

Jonathan, Conference Operator: Thank you. And our next question comes from the line of Kelly Mata from KBW. Your question, please.

Kelly Mata, Analyst, KBW: Hi. Good morning. Thanks for the question. With regards to the tax rate, I see your DTA asked this quarter that you called out in the release. Jamie, can you provide, an updated outlook on on what what this tax law change does to your tax rate outlook for this year and beyond?

Thank you.

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yes. Yep. Yeah. You got it, Kelly. So, where normally we would say we would outlook at, like, 23% for our effective tax rate.

The the outlook for the rest of the year is 23.2%, on that tax rate.

Kelly Mata, Analyst, KBW: Okay. So fairly immaterial. Got it. Okay. And then on the deposit cost, you’ve done such a great job getting your deposit costs down in the first round of rate cuts.

It seems like there’s a declining benefit after future cuts, but when those do come, wondering how you’re thinking about deposit betas on the next round of cuts. You are asset sensitive, but that would be a nice offset.

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yeah, so we have talked in the past about declining betas related to tax cuts. I don’t think we’re fully there yet at the moment. I think we probably have a few more rounds available to us before that starts to become a real issue. I would say that from the perspective of a rate cut, if we were a 95 beta or so on our rate sensitive deposits over the last two cuts, that maybe drops to 90 or so over the next couple of cuts. So, we we still feel pretty strongly that we’ll be able to pass through a large portion, of those cuts to, to those rate sensitive customers.

You know, but, you know, you know, after maybe another 1% or so that, you know, the beta will decline over time on that. So I think I think 90 is an okay number, you know, for the next one or two.

Kelly Mata, Analyst, KBW: Oh, wow. Great. Got it. And then last for me, just a higher picture question. Loan growth this quarter, really nice T and I, but you had the construction pay downs.

It seems like the outlook is a little bit lower than at the start of the year, although still quite good. As you look ahead kind of broader more broadly speaking, what do you think are the main factors that would get increased activity among your client base to really pick up? And over the longer term, what’s that more normalized growth rate? Do you think more mid single digits would be something that could be a useful longer term with these without the payoff headwinds? Thank you.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Yeah, Kelly, it’s Bob. I’m a little reluctant to look at longer term. Just most banks were following the economies of the areas we’re in. So that’s kind of making a bigger forecast that I’m comfortable with. But just to talk maybe a little more specifically about what happened this quarter.

One of the reasons we lowered our guidance just a tad was that we had thought some of these construction loans were going to go into mini perm and if the takeout market is as strong as it is and they’re getting paid off, you know, does affect that. How much will dealer floorplan continue to grow? Hard to tell, but, you know, with pre COVID, I think we’re at eight fifty nine in total and, you know, now we’re seven eighty six. So we’re getting close to what pre COVID numbers were. So the amount of increase will likely slow down.

So it’s really the interplay between those two. The teams are out there, they’re calling on people, there’s good pipelines developing, but it’s just hard to at this point put that into a number between now and year end. Other than what we’ve done in past year end, I don’t think we’d be comfortable commenting.

Kelly Mata, Analyst, KBW: Got it. Maybe just last follow-up on those construction loans getting taken out. Where are you seeing the most competition coming in? Is it from the local banks in Hawaii getting more aggressive on pricing, larger insurance companies, large banks?

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Oh, no. Yeah, this is the end of construction where normally, pre COVID you get taken out right away and then sometimes post COVID, it hangs around in a mini firm for a little while, which is always a feature of those loans. Now we’re seeing more of a return to normalcy with institutional buyers, sometimes insurance companies, sometimes others taking out those loans upon completion of construction. It was never really designed to be a permanent loan for us. So it’s not other local banks.

Kelly Mata, Analyst, KBW: It. Awesome. Thank you so much. I’ll step back.

Tamar Brahzylar, Analyst, Wells Fargo: Yep.

Jonathan, Conference Operator: Thank you. And our next question comes from the line of Jared Shaw from Barclays. Your question, please.

Jared Shaw, Analyst, Barclays: Hey there, thanks. Maybe just on the commercial loan growth that you’re putting on, what are you seeing for spreads on C and I right now? Is that staying stable? Or are you seeing some compression with competition?

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Jared, this is Jamie. They’re staying pretty stable. I think in totality, we have the weighted average roll on is in mid to upper sixes in totality in the books. So but mostly stable, would say, the spreads.

Jared Shaw, Analyst, Barclays: Okay. And then can you just walk through a little bit on the investment securities with the decline in yield this quarter and you talked about reinvesting some of those cash flows. What are you purchasing in terms of yield and duration? And should we expect to see some recovery in the securities yield? Or is it staying lower here?

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Yeah. No. You should expect maybe two and a quarter percent pickup in the on the things that we’re putting back on versus the the roll off. So what’s rolling off is about 2% in that book and we’re going to be putting on maybe somewhere between four and four and a quarter. And so that keeping the duration a little bit keeping the duration sort of same flat in in the book.

And we’re replacing we’re replacing cash flows that roll off with same type of assets that we that are rolling off. So mortgage securities with, you know, with, you know, that are good good structures, and, you know, have either through collateral features or, structure features that sort of give us a tight prepay window. So, in that five duration area.

Jared Shaw, Analyst, Barclays: Okay. Alright. Thanks. And then, just finally for me on credit. I know we’re talking about low numbers, but when you look at sort of the growth in resi mortgage non performers over the last few quarters, that’s been pretty big compared to where you’ve been before.

What’s driving that weakness? I know that there’s probably not a lot of lost content there, but is that what’s sort of driving the underlying concern with the consumer on those?

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Jared, this is Bob. Maybe I’ll start and then Lee can add some comments. The consumer at the, say the lower end is getting a little stretched. Savings as they accumulated during COVID have gone away and it’s just getting a little bit tougher. Lee, I think you’d mentioned on collateral, but anything you wanna add?

Lee Nakamura, Chief Risk Officer, First Hawaiian Bank: No, not really. I mean, the portfolio is performing as we expected. So we were pleased for a very long time with the performance and we continue to be very pleased and confident with the portfolio.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Yeah, for a very long time we had zero. So anything above zero is gonna look like a big number. But we’re not concerned about it from a loss perspective as I think Lee mentioned.

Jared Shaw, Analyst, Barclays: Yep. Okay. Thank you very much.

Jonathan, Conference Operator: Thank you. And our next question comes from the line of Tamar Brahzylar from Wells Fargo. Your question please.

Tamar Brahzylar, Analyst, Wells Fargo: Yes. Hi, good morning. Maybe just keeping to the line of commentary on credit, the increase in commercial criticized assets. Can you just help us reconcile kind of that increasing trend versus the still really strong level of charge offs? And how do you see that ultimately playing out?

Do you think that is gonna somehow correlate to maybe an uptake in charge off activity again off of a really low base? Or do you think that ultimately they’ll just end up curing themselves?

Lee Nakamura, Chief Risk Officer, First Hawaiian Bank: For the most part, they will end up curing themselves. We already know of two that well, one paid off right after the end of the quarter. And then there’s another one that we expect to pay off. And as you mentioned, right, the base is so low that you just have one loan move in and it moves significantly as a percentage. So again, we don’t go into these without some expectation that some will have troubles.

But when you stay close to the borrower, you can be confident that you’ll come out very satisfactorily.

Tamar Brahzylar, Analyst, Wells Fargo: Okay, thanks for that. And then, sorry, go ahead.

Lee Nakamura, Chief Risk Officer, First Hawaiian Bank: No. We are confident in our book. The book is strong.

Tamar Brahzylar, Analyst, Wells Fargo: Okay. Thanks for that. Maybe following up on the completed construction loans being refied away. I’m just trying to get the magnitude here of what’s coming due from a construction completion standpoint. Then similarly on the CRE side for those resets that are approaching, I’m just wondering if you’re seeing an increased level of competition from some of those potentially being resided away as well here.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: Yeah, Timur, I don’t have the specific numbers of what’s coming up. We had three loans pay off in the quarter, kind of led to that pay down for several actually. We are not seeing additional competition on as far as refinancing, as far as new deals coming forward, pricing had expanded a bit during COVID. It’s coming back a little bit more to pre COVID spreads, but it’s still solid and I think appropriate for the risks that we’re underwriting.

Tamar Brahzylar, Analyst, Wells Fargo: Okay, and then maybe just tying in some of the payoff activity, the fact that the floor plan book here is reaching a level of stabilization and your comments around the bond book reaching a level of stabilization. Is the expectation here that we start seeing asset growth or just given some of the dynamics, assets likely remain somewhat stagnant here for at least the near term?

Jamie Moses, Chief Financial Officer, First Hawaiian Bank: Timur, yeah. I think maybe we’ll see some balance sheet growth. We’re going to keep the bond book stable where it’s at. And we should some loan growth in the back half of the year. So I would expect a larger balance sheet by year end.

Bob Harrison, Chairman, President and CEO, First Hawaiian Bank: And some of it, just to add to Jamie’s comments, some of the things that have been a drag over the last several years, our indirect book pre COVID was well over a billion, billion, billion and 1, now it’s 600,000,000. So with whatever it is, five and a half years gone down by 500 plus million. That’s now stabilized. So the market’s reasonable and so we don’t have that headwind now. A little bit of a headwind in residential lending as I think for all the banks here in Hawaii, but just not a lot of new volume as things mature.

But on the commercial side to Jamie’s point, you know, we’re optimistic there’s deals out there and we’re looking at them and feel pretty good about the pipeline.

Tamar Brahzylar, Analyst, Wells Fargo: Got it. Thank you for the questions.

Jonathan, Conference Operator: Thank you. This does conclude the question and answer session of today’s program. I’d like to hand the program back to Kevin Hassayama for any further remarks.

Kevin Hassayama, Investor Relations Manager, First Hawaiian Bank: Thank you. We appreciate your interest in First Hawaiian, and please feel free to contact me if you have any additional questions. Thanks again for joining us, and have a good weekend.

Jonathan, Conference Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.

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