GICS Sector : Financial Services
First Hawaiian, Inc.operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States.It operates through three segments: Retail Banking, Commercial Banking, and Treasury and Other.
First Hawaiian, Inc. reported a solid fourth quarter in 2025, with net interest income growth and well-contained expenses. The company's actual EPS came out at $0.56, beating estimates of $0.55. Total loans grew by $183 million in the quarter, primarily due to draws on existing lines and a new auto dealer customer. Revenue growth is expected to be 3.4% next year, indicating a stable outlook for the company.
Publication Date: Feb -08
The company's financial performance was characterized by NIM expansion, driven by a combination of factors including fixed asset repricing and Fed rate cuts. The NIM is expected to be in the 3.16% to 3.18% range for the full year, with potential tailwinds from further rate cuts. Noninterest income was $55.6 million, while noninterest expense was $125.1 million, indicating a stable expense profile. As James Moses noted, "we still expect a 180-200 basis point pickup from securities and 80-100 basis points from loans," highlighting the potential for continued margin expansion.
The balance sheet remained solid, with good growth in C&I loans, retail and commercial deposits, and ample liquidity. The company repurchased about 1 million shares in February and has a new stock repurchase authorization for $250 million, indicating a commitment to returning capital to shareholders. The CET1 ratio is currently above the target level of 12%, at 13 plus, providing flexibility for future capital returns or M&A opportunities.
At a P/TBV of 1.21, First Hawaiian's valuation appears reasonable, especially considering the expected revenue growth of 3.4% next year. The dividend yield of 3.82% is also attractive, providing a relatively stable source of return for investors. With a ROE of 10.19%, the company is generating a decent return on equity, supporting the current valuation.
First Hawaiian Q4 Earnings Call Highlights
Feb -01
First Hawaiian, Inc. (FHB) Q4 2025 Earnings Call Transcript
Jan -30
First Hawaiian (FHB) Reports Q4 Earnings: What Key Metrics Have to Say
Jan -30
First Hawaiian (FHB) Surpasses Q4 Earnings and Revenue Estimates
Jan -30
First Hawaiian, Inc. Reports Fourth Quarter 2025 Financial Results and Declares Dividend
Jan -30
Heritage Commerce (NASDAQ:HTBK) & First Hawaiian (NASDAQ:FHB) Head-To-Head Contrast
Jan -29
Campbell & CO Investment Adviser LLC Has $270,000 Stock Holdings in First Hawaiian, Inc. $FHB
Jan -25
First Hawaiian Bank Board Member Says Aloha to $1 Million With Recent Insider Sales
Jan -12
First Hawaiian, Inc.'s Retail Banking segment growth is driven by a strong Hawaiian economy, increasing consumer spending, and a growing population. The bank's strategic expansion into new markets, investments in digital banking, and focus on customer experience also contribute to its growth. Additionally, the bank's efforts to increase mortgage lending and deposit growth further support its growth momentum.
Strong loan growth driven by Hawaii's economic expansion, increased commercial lending, and market share gains. Additionally, deposit growth fueled by customer relationships and competitive pricing. Fee income growth from treasury management and cash management services also contributed to the segment's growth.
Treasury and Other segment of First Hawaiian, Inc. exhibits 1% growth driven by increasing low-cost deposits, improved asset liability management, and enhanced fee income from cash management services, coupled with a stable interest rate environment and disciplined expense management.
Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.
Offers financial solutions for businesses, including cash management, commercial lending, and treasury management services.
Provides investment and wealth management services, including brokerage, trust, and insurance services.
Offers residential and commercial mortgage lending services, including purchase and refinance loans.
Issues credit cards with rewards, cashback, and low-interest rates for personal and business use.
Provides online and mobile banking services, including bill pay, fund transfers, and account management.
First Hawaiian, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.
First Hawaiian, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and customer loyalty reduce the likelihood of customers switching to competitors.
First Hawaiian, Inc. relies on a few large suppliers for its operations, which gives them some bargaining power. However, the company's strong financial position and diversified supply chain mitigate this risk.
The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This reduces the threat of new entrants and gives First Hawaiian, Inc. a competitive advantage.
The banking industry is highly competitive, with many established players competing for market share. First Hawaiian, Inc. must continually innovate and improve its services to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 28.85% |
| Debt Cost | 6.13% |
| Equity Weight | 71.15% |
| Equity Cost | 8.92% |
| WACC | 8.12% |
| Leverage | 40.55% |
Value: 6.7
Growth: 5.9
Quality: 7.1
Yield: 5.0
Momentum: 8.0
Volatility: 8.3
1-Year Total Return ->
Value: 6.2
Growth: 4.8
Quality: 7.6
Yield: 8.0
Momentum: 5.0
Volatility: 7.7
1-Year Total Return ->
Value: 6.3
Growth: 4.3
Quality: 6.8
Yield: 8.0
Momentum: 4.0
Volatility: 8.3
1-Year Total Return ->
Value: 5.3
Growth: 5.2
Quality: 5.9
Yield: 7.0
Momentum: 7.0
Volatility: 7.0
1-Year Total Return ->
Value: 4.3
Growth: 4.7
Quality: 6.4
Yield: 7.0
Momentum: 7.0
Volatility: 6.7
1-Year Total Return ->
Value: 7.0
Growth: 5.4
Quality: 7.4
Yield: 6.0
Momentum: 3.5
Volatility: 5.7
1-Year Total Return ->