First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today announced the completion of a restructuring related to its available-for-sale investment securities portfolio.

The Company executed the sale of $293 million of its lower-yielding available-for-sale debt securities for an estimated after-tax loss of $19.7 million. Proceeds from the sale were reinvested in $293 million of debt securities currently yielding 309 basis points more than the securities that were sold. The transaction is projected to increase net interest income by approximately $8.6 million and net interest margin by approximately 4 basis points in 2025. The transaction is projected to increase net interest income by approximately $0.5 million and net interest margin by approximately 1 basis point in the fourth quarter of 2024.

The securities sold had a weighted average yield of 1.92% and a weighted average duration of 3.2 years. The proceeds were reinvested into securities with a weighted average yield of 5.01%, with a weighted average duration of 4.1 years. The Company recognized a one-time pre-tax loss of $26.2 million as a result of the transaction, which will be recognized in the quarter ending December 31, 2024. The breakeven on this transaction is estimated to be 3 years.