XML 27 R13.htm IDEA: XBRL DOCUMENT
v3.23.2

Mortgage Servicing Rights | 6 Months Ended
--- | ---
Jun. 30, 2023
Other Assets. |
Mortgage Servicing Rights | 5. Mortgage Servicing Rights ​ Mortgage servicing activities include collecting principal, interest, tax, and insurance payments from borrowers while accounting for and remitting payments to investors, taxing authorities, and insurance companies. The Company also monitors delinquencies and administers foreclosure proceedings. ​ Mortgage loan servicing income is recorded in noninterest income as a part of other service charges and fees and amortization of the servicing assets is recorded in noninterest income as part of other income. The unpaid principal amount of residential real estate loans serviced for others was $1.4 billion as of both June 30, 2023 and December 31, 2022. Servicing fees include contractually specified fees, late charges, and ancillary fees and were $0.8 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $1.7 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively. ​ Amortization of mortgage servicing rights (“MSRs”) was $0.3 million and $0.5 million for three months ended June 30, 2023 and 2022, respectively, and $0.6 million and $1.3 million for the six months ended June 30, 2023 and 2022, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows: ​
​ | ​ | ​ | ​
​ | ​ | Estimated
(dollars in thousands) |  | Amortization
Under one year | ​ | $ | 885
One to two years | ​ | ​ | 786
Two to three years | ​ | ​ | 696
Three to four years | ​ | ​ | 614
Four to five years | ​ | ​ | 542
​ The details of the Company’s MSRs are presented below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
(dollars in thousands) |  | 2023 |  | 2022
Gross carrying amount | ​ | $ | 69,341 | ​ | $ | 69,273
Less: accumulated amortization | ​ | ​ | 63,269 | ​ | ​ | 62,711
Net carrying value | ​ | $ | 6,072 | ​ | $ | 6,562
​ | ​ | ​ | ​ | ​ | ​ | ​
​ The following table presents changes in amortized MSRs for the three and six months ended June 30, 2023 and 2022: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30,
(dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Balance at beginning of period | ​ | $ | 6,299 | ​ | $ | 7,650 | ​ | $ | 6,562 | ​ | $ | 8,302
Originations | ​ | ​ | 51 | ​ | ​ | 20 | ​ | ​ | 68 | ​ | ​ | 105
Amortization | ​ | ​ | (278) | ​ | ​ | (518) | ​ | ​ | (558) | ​ | ​ | (1,255)
Balance at end of period | ​ | $ | 6,072 | ​ | $ | 7,152 | ​ | $ | 6,072 | ​ | $ | 7,152
Fair value of amortized MSRs at beginning of period | ​ | $ | 15,169 | ​ | $ | 13,585 | ​ | $ | 15,193 | ​ | $ | 12,243
Fair value of amortized MSRs at end of period | ​ | $ | 14,557 | ​ | $ | 14,969 | ​ | $ | 14,557 | ​ | $ | 14,969
​ MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the three and six months ended June 30, 2023 and 2022. ​ The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs as of June 30, 2023 and December 31, 2022 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2023 | ​ | December 31, 2022 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​
​ |  | Range | ​ | Average | ​ | Range | ​ | Average | ​
Conditional prepayment rate | ​ | 6.96 | % | - | 11.63 | % | 7.07 | % | 7.02 | % | - | 13.58 | % | 7.11 | %
Life in years (of the MSR) | ​ | 3.97 | ​ | - | 7.29 | ​ | 7.13 | ​ | 3.35 | ​ | - | 7.37 | ​ | 7.20 | ​
Weighted-average coupon rate | ​ | 3.55 | % | - | 5.91 | % | 3.69 | % | 3.55 | % | - | 6.24 | % | 3.68 | %
Discount rate | ​ | 10.36 | % | - | 10.53 | % | 10.51 | % | 10.41 | % | - | 10.54 | % | 10.51 | %
​ The sensitivities surrounding MSRs are expected to have an immaterial impact on fair value.

X
- Definition n/a + References No definition available. + Details
Name: | fhb_MortgageServicingRightsAbstract
Namespace Prefix: | fhb_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for mortgage servicing rights. + References No definition available. + Details
Name: | fhb_MortgageServicingRightsTextBlock
Namespace Prefix: | fhb_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration