First Hawaiian Q3 profit falls as credit loss provision rises
FHB•First Hawaiian's third-quarter net income fell 13.1% to $63.7 million as its provision for credit losses rose to $20.3 million. Loans and leases declined while deposits increased slightly.
1. Earnings and credit costs
First Hawaiian reported third-quarter net income of $63.73 million, down 13.1%. The provision for credit losses rose to $20.31 million, including a $12.5 million partial charge-off tied to one commercial real estate loan and other CRE loan downgrades.
2. Expenses and tax benefit
Noninterest expense increased by $29.6 million, including $6.7 million in merger-related costs and $24.3 million from settling tax liabilities tied to the 2016 corporate reorganization. Results also included a $31.0 million income tax benefit from an agreement to settle those liabilities.
