First Hawaiian, Inc. Q2 2026 Earnings Recap

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.