First Hawaiian recording 4Q charge after restructuring balance sheet
First Hawaiian in Honolulu warned that it recorded a $17.6 million fourth-quarter charge after restructuring its balance sheet.
The $20 billion-asset company said in a press release late Monday that it sold $898 million of securities with a weighted average yield of 1.72% and an estimated duration of almost three years. The company reinvested the proceeds in debt securities issued by U.S. government agencies with a weighted average yield of 3.03% and estimated duration of roughly two years.
First Hawaiian said it also expects to record a $2.1 million charge in the first quarter, though the moves should add $6.1 million to its 2019 earnings.
The full payback period should total about 30 months, First Hawaiian said. The company earned $67.4 million in the third quarter and $204.4 million for the first nine months of 2018.
First Hawaiian’s former parent company, BNP Paribas, has been reducing its stake over the past two years. The French banking giant initially sold a block of shares during First Hawaiian's 2016 initial public offering. Additional sales, held in July and September, reduced BNP Paribas' stake to about 18%.