First Hawaiian (NASDAQ:FHB – Get Free Report) announced its quarterly earnings results on Friday. The bank reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.07), FiscalAI reports. The firm had revenue of $230.23 million during the quarter, compared to the consensus estimate of $229.20 million. First Hawaiian had a return on equity of 10.27% and a net margin of 24.41%. During the same quarter in the previous year, the company posted $0.59 EPS.
Here are the key takeaways from First Hawaiian’s conference call:
- Acquisition remains on track: First Hawaiian expects to close the TriCo Bancshares transaction in the fourth quarter, with shareholder meetings scheduled for October 29 and integration planning progressing. Management emphasized that retaining TriCo’s local operating model is a priority.
- Margin and net interest income improved: Third-quarter net interest income rose to $174.1 million and net interest margin increased five basis points to 3.30%, helped by stronger asset yields and lower funding costs. Fourth-quarter NIM is expected at 3.34%–3.35%.
- Loan-growth outlook was reduced: Management lowered full-year loan-growth guidance to 1%–2% from 3%–4% after unexpected commercial real estate payoffs, lower dealer floor-plan balances and continued residential-loan runoff.
- Credit metrics weakened during the quarter: Net charge-offs increased to $21.9 million, or 60 basis points of loans, primarily due to a partial charge-off on a downtown Seattle office loan. Criticized assets also rose following four commercial real estate downgrades, although management characterized the issues as limited and largely isolated.
- Funding-cost benefits may be near a trough: Deposits grew by approximately $50 million and total deposit costs declined three basis points, but management expects deposit costs to stabilize at current levels as competitive pressures and potential rate changes limit further improvement.
First Hawaiian Price Performance
FHB opened at $25.34 on Friday. The company has a market capitalization of $3.08 billion, a price-to-earnings ratio of 11.36, a P/E/G ratio of 1.31 and a beta of 0.76. The firm’s fifty day moving average price is $25.51 and its two-hundred day moving average price is $26.98. First Hawaiian has a 1 year low of $23.26 and a 1 year high of $30.58.
First Hawaiian Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 16th will be paid a dividend of $0.26 per share. The ex-dividend date is Monday, November 16th. This represents a $1.04 annualized dividend and a yield of 4.1%. First Hawaiian’s dividend payout ratio (DPR) is 45.22%.
Key Headlines Impacting First Hawaiian
Here are the key news stories impacting First Hawaiian this week:
- Positive Sentiment: Third-quarter revenue reached $230.23 million, topping analyst expectations of $229.20 million. The result indicates that the bank’s underlying revenue generation remained resilient. Earnings Flash: First Hawaiian Reports Third-Quarter Revenue
- Positive Sentiment: Management declared a dividend alongside the third-quarter results, supporting the stock’s income appeal. First Hawaiian’s return on equity was 10.27%, while its net margin was 24.41%. First Hawaiian Reports Third-Quarter Results and Declares Dividend
- Positive Sentiment: An analyst review characterized Hawaii’s island economy as robust, providing a relatively supportive backdrop for First Hawaiian’s lending and banking operations. First Hawaiian Bank: Island Economy Remains Robust
- Neutral Sentiment: The third-quarter earnings call and related transcripts provide additional management commentary on credit quality, loan trends, expenses and outlook, but the supplied reports do not identify a specific new catalyst from the discussion. First Hawaiian Q3 2026 Earnings Call Transcript
- Negative Sentiment: Adjusted earnings were $0.52 per share, missing the roughly $0.59–$0.60 consensus estimate by $0.07–$0.08. EPS also declined from $0.59 in the year-earlier quarter, making the earnings shortfall the primary reason for the negative stock reaction. First Hawaiian Lags Third-Quarter Earnings Estimates
Analyst Upgrades and Downgrades
A number of equities research analysts have commented on the company. Wells Fargo & Company reduced their price objective on First Hawaiian from $28.00 to $26.00 and set an “underweight” rating for the company in a research note on Wednesday, September 30th. Zacks Research lowered First Hawaiian from a “strong-buy” rating to a “hold” rating in a research report on Thursday, August 13th. Stephens upgraded First Hawaiian from an “equal weight” rating to an “overweight” rating and set a $33.00 target price on the stock in a report on Thursday, August 6th. Barclays lifted their price target on shares of First Hawaiian from $28.00 to $30.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 7th. Finally, Piper Sandler reduced their price target on shares of First Hawaiian from $30.00 to $27.00 and set a “neutral” rating for the company in a research report on Thursday, October 1st. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, First Hawaiian currently has a consensus rating of “Hold” and an average target price of $29.00.
View Our Latest Report on First Hawaiian
First Hawaiian Company Profile
First Hawaiian, Inc is the parent company of First Hawaiian Bank, a regional financial institution headquartered in Honolulu, Hawaii. Founded in 1858, First Hawaiian Bank is the oldest bank in Hawaii and serves consumers, businesses, and government entities across the Pacific.
The bank provides a broad range of financial products and services, including checking and savings accounts, consumer and residential loans, commercial lending, credit cards, treasury management, investment and wealth management services, and online and mobile banking.
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