"I'm pleased to report that the third quarter was another period of market-leading performance for First Hawaiian Bank," said Bob Harrison, Chairman, President, and CEO. "These strong results reflect how well our teams and operations work together to deliver outstanding financial performance and the personalized service our customers expect and deserve."
On October 22, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 28, 2025, to stockholders of record at the close of business on November 17, 2025.
Third Quarter 2025 Highlights:
Net income of $73.8 million, or $0.59 per diluted share
Total loans and leases decreased $222.5 million versus prior quarter
Total deposits increased $498.1 million versus prior quarter
Net interest margin increased 8 basis points to 3.19%
Recorded a $4.5 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share
Balance Sheet
Total assets were $24.1 billion at September 30, 2025 versus $23.8 billion at June 30, 2025.
Gross loans and leases were $14.1 billion as of September 30, 2025, a decrease of $222.5 million from $14.4 billion as of June 30, 2025.
Total deposits were $20.7 billion as of September 30, 2025, an increase of $498.1 million from June 30, 2025.
Net Interest Income
Net interest income for the third quarter of 2025 was $169.3 million, an increase of $5.7 million, or 3.5%, compared to $163.6 million for the prior quarter.
The net interest margin was 3.19% in the third quarter of 2025, an increase of 8 basis points compared to 3.11% in the prior quarter.
Provision Expense
During both the quarters ended September 30, 2025 and June 30, 2025, we recorded a $4.5 million provision for credit losses.
Noninterest Income
Noninterest income was $57.1 million in the third quarter of 2025, an increase of $3.1 million compared to noninterest income of $54.0 million in the prior quarter.
Noninterest Expense
Noninterest expense was $125.7 million in the third quarter of 2025, an increase of $0.8 million compared to noninterest expense of $124.9 million in the prior quarter.
The efficiency ratio was 55.3% and 57.2% for the quarters ended September 30, 2025 and June 30, 2025, respectively.
Taxes
The effective tax rate was 23.2% and 16.9% for the quarters ended September 30, 2025 and June 30, 2025, respectively. The lower effective tax rate in the quarter ended June 30, 2025 was primarily due to the remeasurement of the California deferred tax assets as of the beginning of the year, reflecting the enactment of a recent change in the California tax code.
Asset Quality
The allowance for credit losses was $165.3 million, or 1.17% of total loans and leases, as of September 30, 2025, compared to $167.8 million, or 1.17% of total loans and leases, as of June 30, 2025. The reserve for unfunded commitments was $36.2 million as of September 30, 2025 and $33.3 million as of June 30, 2025. Net charge-offs were $4.2 million, or 0.12% of average loans and leases on an annualized basis, for the quarter ended September 30, 2025, compared to net charge-offs of $3.3 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended June 30, 2025. Total non-performing assets were $30.9 million, or 0.22% of total loans and leases and other real estate owned, on September 30, 2025, compared to total non-performing assets of $28.6 million, or 0.20% of total loans and leases and other real estate owned, on June 30, 2025.
Capital
Total stockholders' equity was $2.7 billion on September 30, 2025 and June 30, 2025.
The tier 1 leverage, common equity tier 1 and total capital ratios were 9.16%, 13.24% and 14.49%, respectively, on September 30, 2025, compared with 9.12%, 13.03% and 14.28%, respectively, on June 30, 2025.
The Company repurchased 964 thousand shares of common stock at a total cost of $24.0 million under the stock repurchase program in the third quarter. The average cost was $24.94 per share repurchased.
First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii's oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company's website, www.fhb.com.
Conference Call Information
First Hawaiian will host a conference call to discuss the Company's results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.
To access the call by phone, please register via the following link: https://register-conf.media-server.com/register/BI72bbd4f6b30c462799fbb2d8bde29739, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized" and "outlook", or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ("SEC") filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025.
Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.
Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.
Investor Relations Contact: Kevin Haseyama, CFA(808)
Media Contact:Lindsay Chambers(808)
Financial Highlights
Table 1
For the Three Months Ended
For the Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands, except per share data)
2025
2025
2024
2025
2024
Operating Results:
Net interest income
$
169,331
$
163,583
$
156,707
$
493,440
$
463,985
Provision for credit losses
4,500
4,500
7,400
19,500
15,500
Noninterest income
57,060
53,958
53,288
161,495
156,427
Noninterest expense
125,744
124,939
126,147
374,243
377,046
Net income
73,840
73,247
61,492
206,335
177,633
Basic earnings per share
0.59
0.58
0.48
1.65
1.39
Diluted earnings per share
0.59
0.58
0.48
1.64
1.38
Dividends declared per share
0.26
0.26
0.26
0.78
0.78
Dividend payout ratio
44.07
%
44.83
%
54.17
%
47.56
%
56.52
%
Performance Ratios(1):
Net interest margin
3.19
%
3.11
%
2.95
%
3.13
%
2.93
%
Efficiency ratio
55.29
%
57.23
%
59.77
%
56.88
%
60.38
%
Return on average total assets
1.22
%
1.23
%
1.02
%
1.15
%
0.99
%
Return on average tangible assets (non-GAAP)(2)
1.27
%
1.28
%
1.06
%
1.20
%
1.03
%
Return on average total stockholders' equity
10.81
%
11.03
%
9.45
%
10.32
%
9.37
%
Return on average tangible stockholders' equity (non-GAAP)(2)
17.08
%
17.61
%
15.35
%
16.45
%
15.43
%
Average Balances:
Average loans and leases
$
14,209,282
$
14,288,918
$
14,304,806
$
14,269,030
$
14,325,065
Average earning assets
21,271,827
21,167,588
21,328,882
21,203,245
21,352,739
Average assets
23,993,685
23,859,410
24,046,696
23,914,896
24,064,208
Average deposits
20,411,117
20,280,042
20,367,805
20,348,609
20,415,746
Average stockholders' equity
2,710,273
2,663,850
2,588,806
2,672,284
2,532,911
Market Value Per Share:
Closing
24.83
24.96
23.15
24.83
23.15
High
26.72
25.09
26.18
28.28
26.18
Low
23.48
20.32
20.28
20.32
19.48
As of
As of
As of
As of
September 30,
June 30,
December 31,
September 30,
(dollars in thousands, except per share data)
2025
2025
2024
2024
Balance Sheet Data:
Loans and leases
$
14,129,383
$
14,351,869
$
14,408,258
$
14,241,370
Total assets
24,098,728
23,837,147
23,828,186
23,780,285
Total deposits
20,729,557
20,231,419
20,322,216
20,227,702
Short-term borrowings
—
250,000
250,000
250,000
Total stockholders' equity
2,733,921
2,694,545
2,617,486
2,648,034
Per Share of Common Stock:
Book value
$
22.10
$
21.61
$
20.70
$
20.71
Tangible book value (non-GAAP)(2)
14.05
13.63
12.83
12.92
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases
0.22
%
0.20
%
0.14
%
0.13
%
Allowance for credit losses for loans and leases / total loans and leases
1.17
%
1.17
%
1.11
%
1.15
%
Capital Ratios:
Common Equity Tier 1 Capital Ratio
13.24
%
13.03
%
12.80
%
13.03
%
Tier 1 Capital Ratio
13.24
%
13.03
%
12.80
%
13.03
%
Total Capital Ratio
14.49
%
14.28
%
13.99
%
14.25
%
Tier 1 Leverage Ratio
9.16
%
9.12
%
9.14
%
9.14
%
Total stockholders' equity to total assets
11.34
%
11.30
%
10.98
%
11.14
%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)
7.52
%
7.44
%
7.10
%
7.25
%
Non-Financial Data:
Number of branches
49
48
48
48
Number of ATMs
275
274
273
273
Number of Full-Time Equivalent Employees
2,001
2,006
1,997
2,022
(1) Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2025 and 2024 and three months ended June 30, 2025.
(2) Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders' equity as the ratio of net income to average tangible stockholders' equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders' equity. We compute our tangible book value per share as the ratio of tangible stockholders' equity to outstanding shares. Tangible stockholders' equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders' equity. We compute our tangible stockholders' equity to tangible assets as the ratio of tangible stockholders' equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
Consolidated Statements of Income
Table 2
For the Three Months Ended
For the Nine Months Ended
September 30,
June 30,
September 30,
September 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2025
2024
Interest income
Loans and lease financing
$
196,441
$
193,393
$
205,682
$
581,936
$
607,594
Available-for-sale investment securities
13,470
12,469
12,850
39,089
41,539
Held-to-maturity investment securities
15,920
16,299
16,937
48,866
52,305
Other
16,744
14,578
14,527
44,573
38,444
Total interest income
242,575
236,739
249,996
714,464
739,882
Interest expense
Deposits
70,851
70,289
87,500
212,849
257,252
Short-term borrowings
2,195
2,627
5,397
7,421
17,303
Other
198
240
392
754
1,342
Total interest expense
73,244
73,156
93,289
221,024
275,897
Net interest income
169,331
163,583
156,707
493,440
463,985
Provision for credit losses
4,500
4,500
7,400
19,500
15,500
Net interest income after provision for credit losses
164,831
159,083
149,307
473,940
448,485
Noninterest income
Service charges on deposit accounts
8,096
7,830
7,783
23,461
23,122
Credit and debit card fees
15,850
15,913
17,533
46,237
49,567
Other service charges and fees
13,807
13,350
11,790
39,324
32,730
Trust and investment services income
9,212
9,154
9,077
27,736
28,857
Bank-owned life insurance
6,314
4,724
4,502
15,409
12,148
Investment securities gains, net
—
—
—
37
—
Other
3,781
2,987
2,603
9,291
10,003
Total noninterest income
57,060
53,958
53,288
161,495
156,427
Noninterest expense
Salaries and employee benefits
61,533
59,501
59,563
181,138
176,562
Contracted services and professional fees
15,785
15,997
14,634
46,621
46,440
Occupancy
7,098
7,934
6,945
23,132
21,263
Equipment
13,834
14,037
13,078
41,742
39,687
Regulatory assessment and fees
3,294
3,759
3,412
10,876
15,346
Advertising and marketing
2,033
2,035
1,813
6,247
6,190
Card rewards program
8,694
8,406
8,678
25,019
25,905
Other
13,473
13,270
18,024
39,468
45,653
Total noninterest expense
125,744
124,939
126,147
374,243
377,046
Income before provision for income taxes
96,147
88,102
76,448
261,192
227,866
Provision for income taxes
22,307
14,855
14,956
54,857
50,233
Net income
$
73,840
$
73,247
$
61,492
$
206,335
$
177,633
Basic earnings per share
$
0.59
$
0.58
$
0.48
$
1.65
$
1.39
Diluted earnings per share
$
0.59
$
0.58
$
0.48
$
1.64
$
1.38
Basic weighted-average outstanding shares
124,267,090
125,321,837
127,886,167
125,282,792
127,820,737
Diluted weighted-average outstanding shares
124,970,898
125,833,064
128,504,035
125,977,271
128,362,433
Consolidated Balance Sheets
Table 3
September 30,
June 30,
December 31,
September 30,
(dollars in thousands, except share amount)
2025
2025
2024
2024
Assets
Cash and due from banks
$
249,563
$
304,624
$
258,057
$
252,209
Interest-bearing deposits in other banks
1,606,080
1,094,411
912,133
820,603
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,178,092 as of September 30, 2025, $2,097,906 as of June 30, 2025, $2,190,448 as of December 31, 2024 and $2,290,781 as of September 30, 2024)
1,986,717
1,891,654
1,926,516
2,055,959
Held-to-maturity, at amortized cost (fair value: $3,209,883 as of September 30, 2025, $3,230,698 as of June 30, 2025, $3,262,509 as of December 31, 2024 and $3,475,143 as of September 30, 2024)
3,594,188
3,658,814
3,790,650
3,853,697
Loans held for sale
468
—
—
—
Loans and leases
14,129,383
14,351,869
14,408,258
14,241,370
Less: allowance for credit losses
165,269
167,825
160,393
163,700
Net loans and leases
13,964,114
14,184,044
14,247,865
14,077,670
Premises and equipment, net
302,983
299,149
288,530
287,036
Accrued interest receivable
77,878
77,943
79,979
81,875
Bank-owned life insurance
507,950
502,419
491,890
490,135
Goodwill
995,492
995,492
995,492
995,492
Mortgage servicing rights
4,728
4,828
5,078
5,236
Other assets
808,567
823,769
831,996
860,373
Total assets
$
24,098,728
$
23,837,147
$
23,828,186
$
23,780,285
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing
$
13,947,385
$
13,386,987
$
13,347,068
$
13,427,674
Noninterest-bearing
6,782,172
6,844,432
6,975,148
6,800,028
Total deposits
20,729,557
20,231,419
20,322,216
20,227,702
Short-term borrowings
—
250,000
250,000
250,000
Retirement benefits payable
94,504
95,357
97,135
100,448
Other liabilities
540,746
565,826
541,349
554,101
Total liabilities
21,364,807
21,142,602
21,210,700
21,132,251
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 123,719,585 shares as of September 30, 2025, issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024)
1,422
1,422
1,417
1,417
Additional paid-in capital
2,572,156
2,567,936
2,560,380
2,558,158
Retained earnings
1,041,573
1,000,997
934,048
915,062
Accumulated other comprehensive loss, net
(388,149
)
(407,008
)
(463,994
)
(452,658
)
Treasury stock (18,453,442 shares as of September 30, 2025, 17,489,483 shares as of June 30, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of September 30, 2024)
(493,081
)
(468,802
)
(414,365
)
(373,945
)
Total stockholders' equity
2,733,921
2,694,545
2,617,486
2,648,034
Total liabilities and stockholders' equity
$
24,098,728
$
23,837,147
$
23,828,186
$
23,780,285
Average Balances and Interest Rates
Table 4
Three Months Ended
Three Months Ended
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
Average
Income/
Yield/
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in millions)
Balance
Expense
Rate
Balance
Expense
Rate
Balance
Expense
Rate
Earning Assets
Interest-Bearing Deposits in Other Banks
$
1,471.0
$
16.3
4.40
%
$
1,276.8
$
14.1
4.45
%
$
1,020.4
$
13.9
5.40
%
Available-for-Sale Investment Securities
Taxable
1,921.2
13.5
2.80
1,869.3
12.5
2.67
2,062.6
12.8
2.48
Non-Taxable
1.2
—
5.07
1.3
—
5.27
1.5
—
5.06
Held-to-Maturity Investment Securities
Taxable
3,036.1
12.8
1.68
3,099.9
13.2
1.70
3,288.2
13.8
1.67
Non-Taxable
595.5
3.6
2.39
596.5
3.3
2.21
602.3
3.7
2.46
Total Investment Securities
5,554.0
29.9
2.15
5,567.0
29.0
2.08
5,954.6
30.3
2.03
Loans Held for Sale
0.9
—
5.71
0.3
—
6.86
2.2
—
5.64
Loans and Leases(1)
Commercial and industrial
2,144.0
33.6
6.22
2,291.5
35.2
6.16
2,165.3
38.0
6.98
Commercial real estate
4,481.5
69.9
6.18
4,392.5
66.9
6.11
4,278.3
71.6
6.67
Construction
891.9
15.2
6.78
900.4
14.9
6.66
1,040.7
20.3
7.74
Residential:
Residential mortgage
4,077.1
40.4
3.96
4,104.1
40.2
3.92
4,204.5
40.4
3.84
Home equity line
1,167.0
14.0
4.76
1,154.4
13.4
4.64
1,158.5
13.2
4.52
Consumer
1,018.4
19.6
7.63
1,013.9
19.2
7.58
1,035.3
18.7
7.19
Lease financing
429.4
4.3
3.98
432.1
4.2
3.90
422.2
4.0
3.72
Total Loans and Leases
14,209.3
197.0
5.51
14,288.9
194.0
5.44
14,304.8
206.2
5.74
Other Earning Assets
36.6
0.4
4.72
34.6
0.4
4.94
46.9
0.7
5.83
Total Earning Assets(2)
21,271.8
243.6
4.55
21,167.6
237.5
4.50
21,328.9
251.1
4.69
Cash and Due from Banks
243.3
222.3
242.3
Other Assets
2,478.6
2,469.5
2,475.5
Total Assets
$
23,993.7
$
23,859.4
$
24,046.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings
$
6,331.6
$
21.9
1.37
%
$
6,247.5
$
21.0
1.35
%
$
5,963.1
$
23.6
1.57
%
Money Market
3,837.6
23.4
2.42
3,822.1
22.8
2.39
4,179.5
31.9
3.04
Time
3,353.9
25.5
3.02
3,389.4
26.5
3.14
3,327.3
32.0
3.83
Total Interest-Bearing Deposits
13,523.1
70.8
2.08
13,459.0
70.3
2.09
13,469.9
87.5
2.58
Other Short-Term Borrowings
206.5
2.2
4.22
250.0
2.6
4.22
451.1
5.4
4.76
Other Interest-Bearing Liabilities
14.4
0.2
5.46
