Q4 2024 First Hawaiian Inc Earnings Call
Okay.
Speaker Change: Thank you for standing by and welcome to the first Hawaiian Bank fourth quarter 2024 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
Speaker Change: Ask a question during this session you will need to press star one on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press Star One again as a reminder, today's program is being recorded.
Speaker Change: I'd like to introduce your host for today's program, Kevin House Yamana Investor Relations manager. Please go ahead Sir.
Kevin House: Thank you Jonathan and thank you everyone for joining us as we review our financial results for the fourth quarter of 2024.
Speaker Change: With me today are Bob Harrison, Chairman, President and CEO, Jamie Moses Chief Financial Officer, and Leigh Nakamura, Chief Risk Officer.
Kevin House: We have prepared a slide presentation that we will refer to in our remarks today.
Kevin House: <unk> is available for downloading and viewing on our website at H P Dot com in the Investor Relations section.
Kevin House: During today's call, we will be making forward looking statements. So please refer to slide one for our safe Harbor statement.
Kevin House: We may also discuss certain non-GAAP financial measures you finish to this presentation contains reconciliations of these non-GAAP financial measurements to the mall.
Kevin House: Directly comparable GAAP measurements and now I'll turn the call over to Bob.
Bob Harrison: Thank you Kevin I'll start by giving a quick overview of the local economy.
Our Hawaii economy continued to expand at a slow pace.
Bob Harrison: Statewide seasonally adjusted unemployment rate remained stable in December at 3% compared to the national average of four 1%.
Bob Harrison: Theyre November total visitor arrivals were down slightly.
Bob Harrison: 2%.
Bob Harrison: <unk> spending was down 8% compared to 2023 levels for the same period.
Bob Harrison: The housing market remains stable and December median sales price for a single family home on Oahu was $1 $1 million.
Speaker Change: Five 8% higher than December of 2023.
Speaker Change: Median sales price for condominiums on Oahu was $540000 five 9% higher than last year.
and Pasadena and their homes are safe.
Speaker Change: Turning to slide two, we have highlights of our fourth quarter results.
Speaker Change: We finish the year with a strong quarter driven by growth in loans and deposits, an increase in net interest income, excellent credit quality, solid non-interest income, and well-controlled expenses.
Speaker Change: One of our biggest drivers for our strong performance was eight basis points in NIMA expansion driven by favorable deposit mix changes and rate out performance.
Speaker Change: During the quarter, we also continue to support our communities with a $1 million contribution to the First Wine Foundation.
Speaker Change: Turning to slide 3, I'll go over some balance sheet highlights.
Speaker Change: In the fourth quarter, we executed an investment portfolio restructuring by selling $290 million of securities and using the proceeds to reinvest in a similar amount of securities.
That provided a 309 basis point increase in yield.
Speaker Change: This transaction is expected to increase net interest income by $8.6 million and net interest margin by four basis points in 2025.
Speaker Change: We recognize the $26.2 million pre-tax loss as a result of the transaction, and the estimated impact on the fourth quarter were about half a million to NIN interest income and one basis point to NIN.
Speaker Change: We anticipate that we will continue to use portfolio runoff to fund low growth.
Speaker Change: The balance sheet remains well capitalized and we repurchased about one and a half million shares in the quarter using our entire 40 million stock authorization for 2024.
Thank you.
Our stock purchase authorization for 2025 is $100 million.
and Kevin Haseyama.
Speaker Change: Now turning to slide four, loans grew $167 million, or 1.2% from the prior quarter.
Speaker Change: Loan growth was driven by large increases in CRE and C&I.
Speaker Change: Over 90% of the CRE growth in the quarter was loans collateralized by Hawaii properties. Also, the C&I growth was primarily driven by Hawaii companies.
Speaker Change: Increases in dealer flooring balances added about $33 million to the C&I growth.
Speaker Change: The strong growth was partially offset by payoffs in the construction loan portfolio as a result of completed projects and early refinancing.
Speaker Change: Looking forward, we believe that we will have good origination activity in 2025, but expected payoffs in the CRA and construction portfolios will continue to be somewhat of a headwind.
Speaker Change: As a result, we expect full-year loan growth to be in the low to mid-single-digit range.
Now I'll turn it over to Jamie.
Jamie Moses: Thanks, Bob. And turning to slide 5, we had really good deposit performance from both a balance and rate perspective in the fourth quarter. Total retail and commercial deposits increased by $324 million, with retail deposits up $113 million and commercial deposits up $211 million.
Jamie Moses: Retail and commercial demand deposits increased by 175 million and the ratio of non-interest bearing to total deposits held steady at a robust 34%.
Jamie Moses: Total public deposits declined $230 million, which included a $100 million decrease in higher cost public time deposits.
Jamie Moses: Deposit pricing in the market remained rational and we were able to manage our rate-sensitive deposit costs to closely track the Fed rate cuts during the quarter.
Jamie Moses: As a result of the growth and favorable shift in mix of deposits, and combined with the high deposit beta, our total cost of deposits in the fourth quarter fell by 17 basis points.
and Kevin Haseyama. Thank you. Thank you.
Speaker Change: On slide 6, we see how the deposit performance benefited net interest income and the margin in the quarter.
Jamie Moses: Net interest income was $158.8 million, a linked quarter increase of $2.1 million.
Jamie Moses: The margin increased 8 basis points linked quarter to 3.03%. The favorable variance to prior guidance reflects both proactive strategic pricing actions we took during the quarter, as well as the good deposit gathering performance, particularly in demand deposits.
Jamie Moses: Given the current outlook for interest rates across the curve, we expect the margin to continue to expand throughout 2025.
Jamie Moses: As we've discussed on previous calls, margin expansion will be driven by the underlying fundamentals of the balance sheet.
Jamie Moses: Fixed rate paydowns and maturities in the loan book will be replaced with newly originated loans at higher rates. Additionally, cash flows from the securities portfolio will be used to either fund that loan growth or allow us to let higher cost funding to exit the balance sheet.
Jamie Moses: As a result, we expect NIM to be 3.06% in the first quarter, and if current expectations hold, continue to expand at that pace throughout the year.
Moving to non-interest income and expense on slide 7.
Jamie Moses: Non-interest income was $29.4 million, which includes the $26.2 million pre-tax loss on the sale of securities from the portfolio restructuring.
Jamie Moses: Excluding that loss, total non-interest income would have been $55.6 million.
Jamie Moses: We expect the run rate for non-interest income to average around $51 million per quarter in 2025.
Jamie Moses: Expense management is a priority for us and non-interest expenses in the fourth quarter were $124.1 million down about $2 million versus the prior quarter. We expect expenses in 2025 to increase about 2% to around $510 million.
Jamie Moses: and now I'll turn it over to Lea. Thank you, Jamie. Moving to slide 8, the bank maintained its strong credit performance and healthy credit metrics in the fourth quarter.
Lea: Credit risk remains low, stable, and well within our expectations. We do not see any broad signs of weakness across either the consumer or commercial books.
Lea: As Bob mentioned, we do have customers in the Los Angeles area. We've done a review and none of the properties securing loans in our portfolio were damaged by the wildfires.
Lea: Classified assets decreased by $7.5 million due to paydowns, and year-to-date net charge-offs were $13.6 million.
Lea: Our annual year-to-date net charge-off rate was 10 basis points, mostly unchanged from the third quarter. Non-performing assets and 90-day past-due loans were 19 basis points of total loans and leases at the end of the fourth quarter, up three basis points from the prior quarter.
Lea: Moving to slide 9, we show our third quarter allowance for credit losses broken out by disclosure segments. Slide 10 Slide 11 Slide 12 Slide 13 Slide 14 Slide 15 Slide 16 Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Slide 24 Slide 25 Slide 26 Slide 27 Slide 28 Slide 29 Slide 30 Slide 30 Slide 31
Lea: The asset ACL decreased by $3.3 million to $160.4 million, with coverage decreasing four basis points to 111 basis points of total loans and leases.
Lea: We recorded an $800,000 provision release in the fourth quarter. This was primarily driven by better credit performance in the MAUI portfolio. We remain very comfortable with our loan loss coverage levels.
Lea: Turning to slide 10, we provide an updated snapshot of our CRE exposure. CRE represents approximately 31% of total loans and leases.
Lea: Credit quality remains strong, with LTV's manageable and criticized loans continuing to comprise a very small portion of the portfolio. Let me now turn the call back over to Bob for closing remarks.
Speaker Change: Thank you Lea, thank you Jamie. Now we'd be happy to take any of your questions. Certainly. And one moment for our first question. And as a reminder, if you do have a question, please press star 11 on your telephone. Our first question comes from the line of Andrew Leach from Piper & Sandler. Your question please.
Speaker Change: Hi, good morning everyone. Bob, just a question on the loan pipeline and the cadence of the growth. How does it look going into the first quarter and how do you think that will trend throughout the year?
Thank you for watching!
Speaker Change: Yeah, it's a little hard to predict quarter by quarter, but certainly we have a lot of things we're working on, both here in Hawaii and in the West Coast. So the
Speaker Change: pretty optimistic. The dealer business is, we saw some growth and again, that's kind of stabilized at a higher level than we were last year, which is good. Not sure if that's the high point that we'll reach post-COVID, but certainly good to see that growth continuing. I guess lastly,
Speaker Change: for the Consumer Residential Portfolios. We don't see a lot of growth there and probably given the dynamics of that business still a little bit of a runoff in that portfolio.
Got it. Yeah, that makes sense.
Speaker Change: The C&I growth that you had locally, is there anything specific you can point to that as far as business development or more willingness to borrow, or was it just related to a few one-off benefits from individual companies?
Speaker Change: It's really spread over a lot of our companies. Certainly the larger companies turn in, you know, have bigger dollars associated with them, but it was pretty broad-based, so we're pretty happy with that.
Speaker Change: Got it. And then just a question on the buyback, obviously very active here in the fourth quarter and $100 million for this year. How would you expect that to play out? I mean, I would imagine there might be a little bit of price sensitivity, but how would you expect the pace of buybacks to be throughout 2025?
Jamie Moses: Yeah, Andrew, it's Jamie. I think, you know, I think that the way we're thinking about it is just sort of opportunistically, you know, around that, and, you know, probably spread throughout the year. But, you know, I think it's going to, it's going to depend on just a lot of factors, you know, what we think, you know, you know, as we enter the year a little bit further, how much loan growth we're going to have, and whether or not, you know, whether or not we can deploy capital in that regard first. So, you know, I think it's going to be opportunistic.
Jamie Moses: and, you know, no real guidance on when and how that might be deployed.
Speaker Change: Okay, very helpful. Thanks for taking the questions. I'll step back.
Speaker Change: Thank you. And our next question comes from the line of David Feaster from Raymond James. Your question please.
Hey, good morning, everybody.
Hey Dave, how are you doing?
Speaker Change: I want to just start on the deposit side. I mean, golly, your deposit...
Speaker Change: trends were really good. I was just hoping you could give some color on where you're having success, what drove some of that growth, and just the competitive landscape for deposits on the island. And yeah, just kind of curious what you're seeing on that front.
Speaker Change: Yeah, I mean, you know, the growth trends, particularly in DDA, were just really, really good. We're really pleased with it. You know, I think it's a lot of hard work and dedication from the teams.
Speaker Change: in all of our areas, they've done a really great job meeting new customers, being out in the community, and just doing a great job developing and fostering relationships, you know, number one. Number two, I think you're starting to see a little bit of the technology investments that we've made in the past.
Speaker Change: start to start to bear some fruit there. You know, I can't promise 175 million a DDA every quarter, but I think it's...
Speaker Change: You know, I think just a lot of the things that we've been doing, right, just being focused on taking care of our customers, being focused on being out in the community, and being great stewards, you know, for our communities, really, really helps with all of that.
Speaker Change: So, you know, from a growth perspective, I think that the teams really have just done a really great job on that. And so we're really proud of that.
Speaker Change: And Dave, the only thing I would add is it wasn't just a handful of large accounts. It really was very broad-based from the consumer all across, you know, the rest of our customer base.
That's great.
Speaker Change: That's great. How do you think about deposit growth as we look into the new year? You talked about low growth and low depletion.
Speaker Change: I'm curious, how do you think about deposit growth, or to the extent that you get for deposit growth, maybe we deploy cash flows from the securities book and optimize.
Speaker Change: the deposit base and use securities to fund longer. I'm just kind of curious how you think about some of those dynamics.
Yeah, maybe I'll type and hand it off to Jamie.
Speaker Change: Certainly, we're out there working every day to take care of our customers and that's turned into, you know, as Jamie mentioned, very robust deposit growth in the fourth quarter.
Speaker Change: It's hard to predict a recurrence of that quarter by quarter, but the teams are out there and it's really dependent on the economy here in Hawaii, so I think we're optimistic about that.
Speaker Change: what we do with that, first of all, would be to deploy it in the loan portfolio and again we saw some solid growth in that as we talked about earlier on the call, in our remarks and with Andrew.
Speaker Change: Depending on what happens there, then we give the rest to Jamie.
Speaker Change: and I'll turn it over to him. Yeah, thanks Bob. Yeah, I think, yeah, so if we continue to see this type of deposit growth, I would imagine that some of that will then eventually get redeployed back into the securities portfolio. Of course, you know, we're going to be very, very careful, you know, thinking through, you know, from an asset liability perspective, you know, where exactly that goes into, what types of durations and things like that. So, you know, I would imagine.
Speaker Change: If it comes to that, it'll be relatively short on the curve, but we'll see. And then I would also expect it to continue to be in the same types of securities that we currently have, which are overwhelmingly Fannie, Ginnie securities and that type of thing. So hopefully I've got a big problem for my treasurer on his hands in the back half of the year about deploying some of that capital for him.
Yeah, that's a high-quality problem. Yes.
Speaker Change: I wanted to touch on the pulse of your clients. You alluded to kind of like a sense of optimism, but I'm curious how demand's trending. It sounds like demand's fairly steady and that payoffs are kind of the wild card and the potential headwind to a material acceleration in loan growth. I'm just kind of...
Speaker Change: Curious from your perspective, how demand's trending, obviously, you know, the market's kind of, you know...
Speaker Change: There's a lot of hope that demand kind of accelerates over the course of the year, but curious what you're seeing from that perspective and how new origination yields are trending.
. . . .
Speaker Change: And, you know, we're seeing a lot of people come off the sidelines. We were just talking about this a few days ago. And so there's a lot of equity money coming in to look at real estate deals now.
Speaker Change: Pricing is getting a little bit tighter, but not you know still very appropriate given the the risk parameter, so that's encouraging to see
Speaker Change: What one of the head ones is that there wasn't a lot of
construction loan origination in 2023 for obvious reasons.
Speaker Change: And so that's kind of where we're at now, you know, as the 2022 deals pay off.
Speaker Change: as we're starting to see some of them early and some of them just as appropriate when the project's completed, there isn't as much right behind it. So that's the headwind we spoke to in the remarks.
Speaker Change: And the good news is we're seeing a lot of activity out there. The challenge is that, you know, once on the construction side, once you book it, it does take some time to begin funding.
So, that's really the nuance to our earlier comments.
Speaker Change: Okay, and just one point of clarification, the margin guide you gave, what rate assumptions are you including in that?
Speaker Change: Yeah, that's the forward curve, so there's two rate cuts, one in the middle of the year and one towards the back half of the year.
Perfect. Thanks, everybody.
Speaker Change: Thank you. And our next question comes from the line of Jared Shaw from Barclays. Your question, please.
Hey, good morning, guys, everybody.
Speaker Change: Maybe on the deposit side, what can we expect for interest bearing deposit betas as we move through the year and where are you expecting the year to end from an IB deposit beta side?
Speaker Change: That's a good question, Jared. I think one of the things about the performance that we've had so far on those deposit betas is that from such a low level of deposit cost,
Speaker Change: cutting rates as much as we have, it means there's less room to cut as we go forward, potentially. And so we're cautious about, you know, how we think about the overall level of rates and then compare that to those rate-sensitive deposits that we have.
Speaker Change: You know, you can only cut rates so far, kind of independent of what the Fed does on that. So maybe a little bit less for each subsequent decline in rates, Jared, you know, just, you know, sort of scale the beta back and down from that.
Jared: Okay and then I'm not sure if actually you may have given this at the at the recap of the securities restructuring but what was the the portfolio yield at year-end versus the the average or what you purchased?
Oh, well, so in the, as part of the restructure,
Jared: We picked up about 310 basis points on the restructured piece, so about 2% coming off and about 5% coming on.
Jared: And so our yield on the portfolio is $2.10 in the quarter, and maybe that was just three, four basis points higher in December.
Speaker Change: okay okay so right around there great and then just finally for me just on the on the deposit growth and the DDA growth how much is that a
Speaker Change: I'm guessing that's market share gain for the for the most part of that is there is there a change in the competitive dynamic on the islands with with any of the
Speaker Change: Recent competitive news change, or I guess, you know, what's the sustainability of some of that, maybe market share pickup?
Speaker Change: Hard to say for sure. There could have been a little bit of that in there, but we haven't seen
Speaker Change: I'll call it outflows from anywhere else into here. I think it's been, again, just for the most part, just...
Speaker Change: you know good ground game with the with the teams. They're just out in the community they're just doing a lot for us and you know they're taking care of their customers so yeah I wouldn't I wouldn't read too much into that in terms of you know market competitiveness or dynamics.
Great, thank you.
Speaker Change: Thank you. And our next question comes from the line of Kelly Mota from KBW. Your question please.
Kelly Mota: Hey, good morning. Thanks for the question. I would like to
Speaker Change: A great margin. I would like to get some clarification about what you're considering for the overall size of the balance sheet. Jamie, it sounds like
Speaker Change: you know that's going to be dictated with what you see with with deposits but your outlook for continued expansion from here could you help us out with how you guys are thinking about the overall size of the balance sheet and the potential to take down
Speaker Change: additional borrowings or higher cost funding and replace it with this core funding. That would be helpful. Thank you.
Speaker Change: Yeah, so there's, I don't know, we have about $150 million or so of what we would call higher cost public time deposits that are still on the books.
Speaker Change: and we, you know, and we have rate sensitive deposits that stay with us from a customer perspective. You know, I think we...
Speaker Change: It will really depend upon just what kind of, you know, core deposit growth we're going to get.
Speaker Change: That will probably be the determiner of the size of the balance sheet.
Speaker Change: You know, we think the investment portfolio is probably going to run down, you know, we've got cash flows of about $550 million.
Speaker Change: this year, we expect. So, you know, and those are coming off at 2%. So to the extent that, you know, to the extent that we can find better opportunities for that, we'll look to deploy that. But again, that's dependent on deposit growth. And so.
It's hard to judge at the moment.
Speaker Change: It's hard to see the investment portfolio materially growing from where we're at because of the payoffs and cash flows coming off of that. But again, it will depend on...
you know, what deposits do from an organic perspective.
and Kevin Haseyama.
Okay, that's helpful. And then, Jeannie, can you please?
Speaker Change: I think you said 306 margin in the first quarter with a similar expansion. I think that would imply about three basis points of expansion in Q1 is.
Is that a good run rate, a quarter, about?
three basis points of expansion is that
Speaker Change: what you implied by your guide I'm just I'm just trying to put the pieces together here
Speaker Change: Yeah, I think that's about right. I mean, obviously, the farther we get out into the year, the tougher it is to sort of know where the rate cuts happen and what type of growth in deposits we're seeing, that kind of thing. But as of right now, I think a three basis point expansion kind of throughout the year, three basis points per quarter, that seems about right to me.
Thank you.
Speaker Change: Okay all right and I'm assuming you're when you're talking about the size of the balance sheet you're any any sort of incremental deposit growth would be incremental to NII but that's not necessarily baked into your your outlook here is that is that the right way to think about it? That's yeah that's right you got it.
Speaker Change: Awesome. Thanks for the clarification. Just from a high-level view, there was a notable...
Speaker Change: One of your competitors is out of the electric company. Just wondering if you've seen any kind of change in the competitive dynamics in Hawaii and
Speaker Change: And I think everybody's very impressed with your ability to get deposit costs down. So just wondering from a high level what you guys are seeing.
Speaker Change: Hi Kelly, this is Bob. Early days obviously but hasn't even been a month yet or just right out of month and we haven't seen any changes currently so.
David Feaster, Timur Braziler,
Speaker Change: Awesome. Thank you. Thank you so much for that. And then I guess lastly.
Speaker Change: You know, NPAs remain incredibly low. It seems like a lot of the growth you're seeing, too, is in Hawaii. If you could just provide an update on, you know, the outlook from here for asset quality. If there's anything you're watching more carefully, everything, you know, looks really good from an outsider's perspective.
Speaker Change: Yeah, I'll maybe make a comment and ask Lea if she has anything to add. You know we're closely monitoring certainly all of our CRE and everything else and we're not seeing anything on the horizon that is coming up that seems stable. Lea, anything you would add to that?
Lea: No, the only thing I would add maybe is we're actually very pleased with the performance of the Maui portfolio.
Lea: And so, you know, credit's performing within our expectations and so we're very
I don't know.
Speaker Change: Yeah, we're glad they're doing well, and that's what, in part, helped us on the lower provision, actually a small release in Q4. That was a big part of it.
Lea: Great, that's good to hear. I will step back. Thank you for the questions.
Speaker Change: The first time I've seen this video, I've seen it in the video.
Speaker Change: Thank you. And our next question comes from the line of Anthony Elion from J.P. Morgan. Your question, please.
Speaker Change: Hi everyone. Jamie, if we get no rate cuts this year, can you just talk about the impact that would have to the NIM outlook you provided for expansion over the course of this year?
Speaker Change: Yeah, so I would say you should probably add another basis point or two per quarter to that general guide.
and the first one is the first one.
Speaker Change: Okay, clear. And then my follow-up, the fee income guidance of 51 million per quarter, I think that's a little bit of a, it would imply a little bit of a slowdown. Then what you've seen the past couple of quarters, can you just talk about, yeah, what areas you expect to slow down or is there just level of conservatism baked into that? Thank you.
Speaker Change: Sure, yeah, I mean, we had a number of things throughout the back half of the year this year that sort of worked in our favor from a fee income perspective. We had some insurance proceeds kind of kicked in. We had a little bit extra BOLI income from a death benefit perspective, you know, in the back half of the year. And so, you know, there's just kind of a lot of fees kind of went our way, I'll call it, you know, over the past six months.
Speaker Change: and so it's a little bit of a normalization of that and maybe there is a touch of conservatism built into that as well. So just kind of, we'll be updating that obviously as we do every quarter, we'll let you guys know what we see and how we think about it.
Thank you for watching!
Thank you.
Speaker Change: Thank you and our next question comes from the line of Andrew Terrell from Stevens your question, please
Hey, good morning.
Alrighty.
Speaker Change: Just most of my word address already. I did have a quick question around just the the security is restructuring in the quarter and really, you know, going forward.
Speaker Change: I mean, you've got quite a lot of cash flow coming up over the next year off of the bond book. Your kind of loan growth is accelerating.
Speaker Change: any need or kind of interest or appetite in any further repositioning transactions? And then, you know, how do you compare that from an earn back standpoint relative to the buyback?
Speaker Change: Yeah, good question, Andrew. You know, we will always be, you know, considering things.
Speaker Change: I wouldn't say no, but it will be something that is in the consideration set as we go forward.
Speaker Change: And we will, the way that we'll look at it is in some ways comparable to the buyback, but and then in other ways.
Speaker Change: It's not really It's not really apples to apples in our in our mind around those things so, you know, I wouldn't say we're we would not do a securities reposition, but Seems unlikely in the short term for sure And and you know, we'll see how it goes And of course, we'll keep you know
Speaker Change: sort of opportunistically looking at share buybacks throughout the year and we'll just kind of, it's tough to give a guide on it.
and the other one.
Speaker Change: You know, we're always looking at ways to sort of give our shareholders a return and we continue to evaluate, you know, what the best opportunities for that are.
and Kevin Haseyama.
Speaker Change: Okay. Understood. I appreciate it. And then, if I could just ask one more, Bob, I think you mentioned maybe some heavier payoffs weighing on what is otherwise, it sounds like pretty solid origination efforts. I'm just curious if you could provide maybe
Speaker Change: some color on do you have line of sight into that payoff pressure and whether it's, you know, more front end loaded and just trying to get a sense of whether, you know, your loan growth guidance for that load amid single includes an assumption for you know, an acceleration in the back half of the year if it's pretty kind of tempered loan growth throughout.
Yeah, great question. I think that's.
Speaker Change: a good call out. It will probably be more in the back half of the year. It's hard to predict the
Speaker Change: Some of the construction loans have been paying off early just because Well, we love the credit metrics that that speaks to it You know from a balanced perspective that makes a little bit more challenging, but you know you can't really predict those But we do think there will be a little bit more
Speaker Change: refinance and payoff activity in the front half versus the back half, which would then favor the back half for loan growth.
Thank you for watching!
David Feaster, Timur Braziler,
Okay, thank you for taking the questions. I appreciate it.
Speaker Change: Thank you. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone.
Speaker Change: And this does conclude the question and answer session of today's program. I'd like to hand the program back to Kevin Haseyama for any further remarks.
Speaker Change: Thank you. Thanks everyone for joining us. We appreciate your interest in First Hawaiian and please feel free to contact me if you have any additional questions.
Have a good weekend.
Speaker Change: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.
Thank you. Thank you.
Speaker Change: [music].