First Hawaiian, Inc. (NASDAQ: FHB)

First Hawaiian, Inc. (FHI), a bank holding company, operates primarily in the financial services industry, with its headquarters in Honolulu, Hawaii. The company, through its subsidiary First Hawaiian Bank, offers a diversified range of banking services that include deposit products, lending services, and wealth management and trust services. With over 2,000 employees and an average tenure of 11.5 years, FHI operates in a highly competitive environment, facing significant competition from financial institutions both within and beyond its principal markets.

The company's main business activities involve generating revenue through various banking services. Its primary products and services include checking and savings accounts, commercial and industrial lending, auto dealer flooring, commercial real estate lending, construction lending, mortgage lending, auto finance, small business loans, personal installment loans, credit cards, and merchant processing services. The company's customer base consists of consumer and commercial customers, as well as middle market and large Hawaii-based businesses.

FHI's competitive advantages in the industry include its long history and reputation in Hawaii, extensive branch network, and strong relationships with customers and employees. Additionally, the company is well-capitalized and well-managed, boasting a strong balance sheet and a solid track record of profitability. The company's largest customers are its commercial banking customers, which include Aloha Petroleum, Ltd., Alexander & Baldwin, Inc., and Matson, Inc.

In terms of its position within the industry, FHI is one of the largest full-service banks headquartered in Hawaii, with assets of $24.9 billion, gross loans and leases of $14.4 billion, and deposits of $21.3 billion as of December 31, 2023. The company is also one of the largest employers in Hawaii, with over 2,000 employees. FHI faces significant competition from other financial institutions, including commercial banks, savings banks, credit unions, and non-bank financial services companies.

In terms of its regulatory environment, FHI is subject to extensive regulation under federal and state banking laws, including the Bank Holding Company Act of 1956, the Federal Reserve Act, and the Hawaii Code of Financial Institutions. The company is also subject to oversight by the Federal Reserve, the FDIC, and the Hawaii Department of Financial Institutions, among others. FHI is required to comply with a range of regulations and guidelines, including those related to capital requirements, risk management, consumer protection, and anti-money laundering.

The Retail Banking segment provides a range of deposit products and lending services to consumer and commercial customers. The Commercial Banking segment offers comprehensive commercial banking services to middle market and large Hawaii-based businesses, including commercial and industrial lending, auto dealer flooring, commercial real estate lending, and construction lending. The Treasury and Other segment includes the company's treasury operations, as well as other miscellaneous activities.