Question · Q3 2025
Charlie Driscoll inquired about First Hawaiian Inc.'s capital priorities, including the approach to share buybacks and the M&A strategy given the heating market. He also asked for specifics on deposit betas in Hawaii's rational pricing environment, anticipating Fed rate cuts, and whether the margin expansion guidance assumes any loan purchases.
Answer
Jamie Moses, Vice Chairman and CFO, reiterated capital priorities focus on loan growth within credit parameters and noted the remaining share buyback authority, with future activity dependent on market conditions. He indicated no immediate dividend increase due to the relatively high payout ratio. Moses detailed deposit betas for rate-sensitive portfolios, expecting them to decrease from 90% for the next cut to 85% for subsequent cuts. He clarified that the margin expansion guidance for Q4 does not assume any loan purchases, relying instead on strong organic loan growth.