First Hawaiian, Inc. (FHB) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2025
0mins
Should l Buy FHB?
Source: SeekingAlpha
State Unemployment Rate 2.7% in August, compared to the national unemployment rate of 4.3%. No specific reasons for the change were mentioned.
Visitor Spending $4.6 billion year-to-date, up 4.5% compared to the same period last year. The increase was attributed to strength in U.S. Mainland arrivals offsetting weaknesses in Japanese and Canadian arrivals.
Median Single-Family Sales Price on Oahu $1.2 million in September, up 3.8% from last year. No specific reasons for the change were mentioned.
Median Condo Sales Price on Oahu $509,000 in September, down 1.7% from the prior year. No specific reasons for the change were mentioned.
Net Income Increased compared to the second quarter. The improvement was driven by higher net interest and noninterest income, partially offset by a higher effective tax rate.
Effective Tax Rate 23.2% in the third quarter, normalized after a net benefit of $5.1 million in the second quarter due to a change in California tax law.
Total Loans Declined by $223 million in the quarter, primarily due to a $146 million fall in dealer flooring balances and $130 million paydown on lines of credit by Hawaii corporate borrowers.
Total Deposits Increased by $500 million in the third quarter. Commercial deposits rose by $135 million, while retail deposits declined by $43 million due to seasonality. Public deposits increased by $406 million, all in operating accounts.
Net Interest Income (NII) $169.3 million, $5.7 million higher than the prior quarter. The increase was driven by higher asset yields and nonrecurring items such as loan fees.
Net Interest Margin (NIM) 3.19% in the third quarter, up 8 basis points from the prior quarter. The increase was primarily driven by higher asset yields and nonrecurring items.
Noninterest Income $57.1 million in the quarter, benefiting from higher BOLI income due to favorable market movements and swap income.
Classified Assets Increased by $30.1 million due to a single borrower. No broad signs of weakness were observed across consumer or commercial books.
Net Charge-Offs $4.2 million in the quarter, or 12 basis points of total loans and leases. Year-to-date net charge-offs were $11.3 million, with an annualized rate of 11 basis points, 1 basis point higher than the second quarter.
Allowance for Credit Losses (ACL) $165.3 million, decreased by $2.6 million in the third quarter. Coverage remained at 117 basis points of total loans and leases.
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Analyst Views on FHB
Wall Street analysts forecast FHB stock price to rise
9 Analyst Rating
0 Buy
6 Hold
3 Sell
Moderate Sell
Current: 26.090
Low
24.00
Averages
27.56
High
29.00
Current: 26.090
Low
24.00
Averages
27.56
High
29.00
About FHB
First Hawaiian, Inc. is a bank holding company. Its principal subsidiary is First Hawaiian Bank (the Bank). The Bank provides a range of banking services to consumer and commercial customers, including deposit products, lending services and wealth management and trust services. Its segments include Retail Banking, Commercial Banking and Treasury and Other. Its Retail Banking segment includes the financial products and services it provides to consumers and small businesses. Its Retail Banking segment also includes its wealth management services. Its Commercial Banking segment includes its corporate banking-related products, commercial real estate loans, commercial lease financing, secured and unsecured lines of credit, automobile loans and auto dealer financing, business deposit products and credit cards. Its Treasury and Other segment include its treasury business, which consists of corporate asset and liability management activities, including interest rate risk management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Hawaiian Bank Q4 2025 Earnings Highlights
- Net Interest Income Growth: First Hawaiian Bank reported net interest income of $170.3 million for Q4, an increase of $1 million from the previous quarter, with a net interest margin (NIM) of 3.21%, reflecting the bank's strong performance in the current interest rate environment.
- Deposit Dynamics: Retail and commercial deposits rose by $233 million, while public deposits fell by $447 million, resulting in a net deposit increase of $214 million in Q4, with total deposit costs decreasing by 9 basis points to 1.29%, indicating effective deposit management by the bank.
- Share Buyback Program: During Q4, the bank repurchased approximately 1 million shares, utilizing $26 million of its $100 million buyback authorization for 2025, with a new buyback authorization of $250 million, demonstrating management's confidence in the company's future performance.
- Outlook Projection: Management expects loan growth for 2026 to be in the range of 3% to 4%, with noninterest income stable at about $220 million and expenses projected at $520 million, reflecting a positive outlook and sound financial management strategies.
See More
First Hawaiian Bank Q4 Earnings Beat Expectations
- Earnings Performance: First Hawaiian Bank reported a Q4 GAAP EPS of $0.56, beating expectations by $0.01, indicating the company's stable profitability and growth potential.
- Significant Revenue Growth: The bank's Q4 revenue reached $225.85 million, a 20.0% year-over-year increase, exceeding market expectations by $0.42 million, reflecting strong demand for loans and services.
- Loan and Deposit Dynamics: Total loans and leases increased by $183.1 million compared to the prior quarter, while total deposits decreased by $213.9 million, highlighting a dual challenge of aggressive credit expansion and deposit attrition.
- Shareholder Return Initiatives: The Board declared a quarterly dividend of $0.26 per share and adopted a $250 million stock repurchase program, aimed at enhancing shareholder value and boosting market confidence.
See More
First Hawaiian Bank Declares Quarterly Dividend
- Quarterly Dividend Announcement: First Hawaiian Bank (FHB) declared a quarterly dividend of $0.26 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Performance: The forward yield of 3.77% reflects the company's attractiveness to shareholders, potentially drawing more investor interest in its stock.
- Payment Schedule: The dividend will be payable on February 27, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their returns promptly.
- Shareholder Return Strategy: First Hawaiian Bank's dividend policy aligns with its improving capital position, demonstrating the company's commitment to providing attractive returns to shareholders while bolstering market confidence.
See More
First Hawaiian Vice Chair Alan Arizumi Sells 43,026 Shares for Approximately $1.1 Million
- Significant Ownership Reduction: Alan Arizumi sold 43,026 shares for approximately $1.1 million on December 4, 2025, resulting in a 52.16% reduction in his aggregate holdings, leaving him with 37,508 directly held shares and 1,962 indirectly held shares, indicating a potential decrease in confidence regarding the company's future.
- Unique Trading History: This marks Arizumi's first open-market sale in two years, with all prior Form 4 activity consisting of administrative entries, highlighting the significance of this transaction in both size and nature, which may influence investor perceptions of his holding strategy.
- Company Financial Performance: First Hawaiian Bank is projected to achieve approximately 15% year-over-year net income growth for FY 2025, marking its first positive growth since FY 2021 despite an underwhelming FY 2024, signaling a potential recovery that could attract more investor interest.
- Stable Dividend Policy: Since FY 2019, First Hawaiian Bank has consistently paid an annual dividend of $1.04 per share, and while the dividend has not increased, the company's unwavering commitment to dividend payouts may appeal to investors seeking stable returns, enhancing its competitive position in the market.
See More
First Hawaiian Bank Vice Chair Alan Arizumi Sells Over 40,000 Shares Worth Over $1 Million
- Insider Selling: Alan Arizumi, Vice Chair of First Hawaiian Bank, sold 43,026 shares on December 4, 2025, totaling approximately $1.1 million, representing a 52.16% reduction in his holdings, which indicates a cautious outlook on the company's future.
- Financial Recovery: Despite an underwhelming FY 2024, First Hawaiian Bank is projected to achieve approximately 15% year-over-year net income growth in FY 2025, marking its first positive growth since FY 2021, reflecting the company's potential for market recovery.
- Consistent Dividend Policy: Since FY 2019, First Hawaiian Bank has maintained an annual dividend payout of $1.04 per share, demonstrating its commitment to shareholder returns despite not increasing the payout, showcasing stability in uncertain market conditions.
- Stock Price Uptrend: The bank's stock has risen 4% in January 2026, indicating growing market confidence in its future prospects, especially ahead of the upcoming FY 2025 earnings release, which investors are eagerly anticipating.
See More
Dave Inc. and Others Show Strong EPS Revisions Ahead of Earnings Season
- Earnings Outlook: As earnings season approaches, companies like Dave Inc. (DAVE) have shown strong performance in EPS revisions, achieving an A+ rating that indicates robust upward adjustments in analyst earnings expectations, suggesting potential outperformance in upcoming results.
- Leading Quant Ratings: According to Seeking Alpha's Quant Ratings system, Dave Inc. leads with a score of 4.83, followed closely by Hagerty (HGTY) at 4.82 and Valley National Bancorp (VLY) at 4.74, highlighting their superior performance across critical metrics such as valuation, growth, and profitability.
- Investment Opportunities: These highly rated mid-cap financial stocks present compelling investment opportunities, especially in the current economic climate, allowing investors to leverage quantitative analysis tools for better assessment of potential returns.
- Positive Market Sentiment: Seeking Alpha's rating system categorizes scores of 3.5 and above as bullish, with many companies currently rated above this threshold, reflecting optimistic market sentiment towards mid-cap financial stocks, which may drive stock prices higher.
See More
First Hawaiian Bank Q4 2025 Earnings Highlights
- Net Interest Income Growth: First Hawaiian Bank reported net interest income of $170.3 million for Q4, an increase of $1 million from the previous quarter, with a net interest margin (NIM) of 3.21%, reflecting the bank's strong performance in the current interest rate environment.
- Deposit Dynamics: Retail and commercial deposits rose by $233 million, while public deposits fell by $447 million, resulting in a net deposit increase of $214 million in Q4, with total deposit costs decreasing by 9 basis points to 1.29%, indicating effective deposit management by the bank.
- Share Buyback Program: During Q4, the bank repurchased approximately 1 million shares, utilizing $26 million of its $100 million buyback authorization for 2025, with a new buyback authorization of $250 million, demonstrating management's confidence in the company's future performance.
- Outlook Projection: Management expects loan growth for 2026 to be in the range of 3% to 4%, with noninterest income stable at about $220 million and expenses projected at $520 million, reflecting a positive outlook and sound financial management strategies.
See More
First Hawaiian Bank Q4 Earnings Beat Expectations
- Earnings Performance: First Hawaiian Bank reported a Q4 GAAP EPS of $0.56, beating expectations by $0.01, indicating the company's stable profitability and growth potential.
- Significant Revenue Growth: The bank's Q4 revenue reached $225.85 million, a 20.0% year-over-year increase, exceeding market expectations by $0.42 million, reflecting strong demand for loans and services.
- Loan and Deposit Dynamics: Total loans and leases increased by $183.1 million compared to the prior quarter, while total deposits decreased by $213.9 million, highlighting a dual challenge of aggressive credit expansion and deposit attrition.
- Shareholder Return Initiatives: The Board declared a quarterly dividend of $0.26 per share and adopted a $250 million stock repurchase program, aimed at enhancing shareholder value and boosting market confidence.
See More
First Hawaiian Bank Declares Quarterly Dividend
- Quarterly Dividend Announcement: First Hawaiian Bank (FHB) declared a quarterly dividend of $0.26 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Performance: The forward yield of 3.77% reflects the company's attractiveness to shareholders, potentially drawing more investor interest in its stock.
- Payment Schedule: The dividend will be payable on February 27, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their returns promptly.
- Shareholder Return Strategy: First Hawaiian Bank's dividend policy aligns with its improving capital position, demonstrating the company's commitment to providing attractive returns to shareholders while bolstering market confidence.
See More
First Hawaiian Vice Chair Alan Arizumi Sells 43,026 Shares for Approximately $1.1 Million
- Significant Ownership Reduction: Alan Arizumi sold 43,026 shares for approximately $1.1 million on December 4, 2025, resulting in a 52.16% reduction in his aggregate holdings, leaving him with 37,508 directly held shares and 1,962 indirectly held shares, indicating a potential decrease in confidence regarding the company's future.
- Unique Trading History: This marks Arizumi's first open-market sale in two years, with all prior Form 4 activity consisting of administrative entries, highlighting the significance of this transaction in both size and nature, which may influence investor perceptions of his holding strategy.
- Company Financial Performance: First Hawaiian Bank is projected to achieve approximately 15% year-over-year net income growth for FY 2025, marking its first positive growth since FY 2021 despite an underwhelming FY 2024, signaling a potential recovery that could attract more investor interest.
- Stable Dividend Policy: Since FY 2019, First Hawaiian Bank has consistently paid an annual dividend of $1.04 per share, and while the dividend has not increased, the company's unwavering commitment to dividend payouts may appeal to investors seeking stable returns, enhancing its competitive position in the market.
See More
First Hawaiian Bank Vice Chair Alan Arizumi Sells Over 40,000 Shares Worth Over $1 Million
- Insider Selling: Alan Arizumi, Vice Chair of First Hawaiian Bank, sold 43,026 shares on December 4, 2025, totaling approximately $1.1 million, representing a 52.16% reduction in his holdings, which indicates a cautious outlook on the company's future.
- Financial Recovery: Despite an underwhelming FY 2024, First Hawaiian Bank is projected to achieve approximately 15% year-over-year net income growth in FY 2025, marking its first positive growth since FY 2021, reflecting the company's potential for market recovery.
- Consistent Dividend Policy: Since FY 2019, First Hawaiian Bank has maintained an annual dividend payout of $1.04 per share, demonstrating its commitment to shareholder returns despite not increasing the payout, showcasing stability in uncertain market conditions.
- Stock Price Uptrend: The bank's stock has risen 4% in January 2026, indicating growing market confidence in its future prospects, especially ahead of the upcoming FY 2025 earnings release, which investors are eagerly anticipating.
See More
Dave Inc. and Others Show Strong EPS Revisions Ahead of Earnings Season
- Earnings Outlook: As earnings season approaches, companies like Dave Inc. (DAVE) have shown strong performance in EPS revisions, achieving an A+ rating that indicates robust upward adjustments in analyst earnings expectations, suggesting potential outperformance in upcoming results.
- Leading Quant Ratings: According to Seeking Alpha's Quant Ratings system, Dave Inc. leads with a score of 4.83, followed closely by Hagerty (HGTY) at 4.82 and Valley National Bancorp (VLY) at 4.74, highlighting their superior performance across critical metrics such as valuation, growth, and profitability.
- Investment Opportunities: These highly rated mid-cap financial stocks present compelling investment opportunities, especially in the current economic climate, allowing investors to leverage quantitative analysis tools for better assessment of potential returns.
- Positive Market Sentiment: Seeking Alpha's rating system categorizes scores of 3.5 and above as bullish, with many companies currently rated above this threshold, reflecting optimistic market sentiment towards mid-cap financial stocks, which may drive stock prices higher.
See More
