First Hawaiian, Inc. Earnings Recaps
Q3 2026
Oct 27, 2026
First Hawaiian shares fell 3.0% after earnings, with credit deterioration likely weighing on investors: net charge-offs reached 60 basis points, and criticized assets rose 72 basis points, largely due to CRE downgrades. NII and margin improved, but the quarter also included a sizable office-loan charge-off and higher provision expense.
Key takeaways
- Net interest income was $174.1 million, up $3.1 million from the prior quarter; net interest margin increased 5 basis points to 3.30%.
- Deposits grew about $50 million and the total cost of deposits fell 3 basis points; the noninterest-bearing deposit ratio was 32%.
- Net charge-offs were $21.9 million, or 60 basis points of loans and leases, including a $12.5 million partial charge-off on a participated Seattle office loan. Year-to-date annualized net charge-offs were 29 basis points.
- Criticized assets increased 72 basis points, primarily from four non-office CRE loan downgrades. Provision was $20.3 million, and the allowance for credit losses declined $4 million to $164 million.
- Total loans fell $115 million, mainly due to unexpected CRE payoffs, lower dealer floor-plan balances and residential-loan runoff. The bank said it still expects the acquisition to close this quarter.
Q2 2026
Jul 26, 2026
Shares declined 1.9% despite stable execution, reflecting investor caution over deposit outflows, restrained loan growth, and a modestly lowered NIM outlook amid ongoing seasonal volatility and transactional expenses.
Key takeaways
- Total loans grew by $137 million (3.6% annualized), driven by C&I and CRE growth, partially offset by construction and residential loan payoffs.
- Deposits declined by $623 million, primarily due to expected seasonal outflows of public deposits, particularly lower government operating accounts and time deposits.
- Net interest margin was 3.25%, up 6 basis points from Q1, but the full-year NIM guidance was narrowed and slightly lowered to 3.24%-3.25%.
- Noninterest income rose to $60.3 million on higher BOLI income, excise tax refund, and swap fees; noninterest expense included $4.2 million in TriCo acquisition costs, with more transaction expenses anticipated.
- Credit quality remained solid with a reduction in classified assets, supporting a stable allowance for credit losses.