First Hawaiian (FHB) said Monday it has completed a restructuring of its available-for-sale investment securities portfolio.

The company said it sold $293 million in lower-yielding available-for-sale debt securities, incurring a $19.7 million after-tax loss, and reinvested the proceeds into $293 million of debt securities yielding 309 basis points higher.

The transaction is projected to boost net interest income by about $8.6 million and net interest margin by 4 basis points in 2025, with increases in Q4 of $0.5 million and 1 basis point, respectively, the company said.

The sold securities had a weighted average yield of 1.92% and a duration of 3.2 years, while the proceeds were reinvested into securities with a yield of 5.01% and a duration of 4.1 years.

The company said it incurred a one-time pre-tax loss of $26.2 million from the transaction, to be recognized in the quarter ending Dec. 31, with a projected breakeven period of 3 years.