"I'm pleased to report that First Hawaiian started 2026 with a strong first quarter," said Bob Harrison, Chairman, President, and CEO. "We had good growth in loans and deposits, and credit quality remained excellent. Our commitment to our communities is just as strong, as we actively support recovery efforts following the recent floods in Hawai‘i and Typhoon Sinlaku's impact on Guam and Saipan. We will continue to stand alongside our customers across our markets throughout the recovery."
On April 22, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 29, 2026, to stockholders of record at the close of business on May 18, 2026.
First Quarter 2026 Highlights:
Net income of $67.8 million, or $0.55 per diluted share
Total loans and leases increased $128.3 million versus prior quarter
Total deposits increased $261.7 million versus prior quarter
Net interest margin declined 2 basis points to 3.19%
Recorded a $5.0 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share
Balance Sheet
Total assets were $24.3 billion at March 31, 2026 versus $24.0 billion at December 31, 2025.
Gross loans and leases were $14.4 billion as of March 31, 2026, an increase of $128.3 million from $14.3 billion as of December 31, 2025.
Total deposits were $20.8 billion as of March 31, 2026, an increase of $261.7 million from $20.5 billion as of December 31, 2025.
Net Interest Income
Net interest income for the first quarter of 2026 was $167.5 million, a decrease of $2.8 million compared to $170.3 million for the prior quarter.
The net interest margin was 3.19% in the first quarter of 2026, 2 basis points lower than the prior quarter's margin of 3.21%.
Provision Expense
During the quarter ended March 31, 2026, we recorded a $5.0 million provision for credit losses. In the quarter ended December 31, 2025, we recorded a $7.7 million provision for credit losses.
Noninterest Income
Noninterest income was $52.8 million in the first quarter of 2026, $2.7 million lower compared to noninterest income of $55.6 million in the prior quarter.
Noninterest Expense
Noninterest expense was $127.9 million in the first quarter of 2026, $2.8 million higher compared to noninterest expense of $125.1 million in the prior quarter.
The efficiency ratio was 57.8% and 55.1% for the quarters ended March 31, 2026 and December 31, 2025, respectively.
Taxes
The effective tax rate was 22.5% and 24.8% for the quarters ended March 31, 2026 and December 31, 2025, respectively.
Asset Quality
The allowance for credit losses was $169.3 million, or 1.17% of total loans and leases, as of March 31, 2026, compared to $168.5 million, or 1.18% of total loans and leases, as of December 31, 2025. The reserve for unfunded commitments was $34.9 million as of March 31, 2026 and $35.7 million as of December 31, 2025. Net charge-offs were $4.9 million, or 0.14% of average loans and leases on an annualized basis, for the quarter ended March 31, 2026, compared to net charge-offs of $5.0 million, or 0.14% of average loans and leases on an annualized basis, for the quarter ended December 31, 2025. Total non-performing assets were $39.7 million, or 0.27% of total loans and leases and other real estate owned, on March 31, 2026, compared to total non-performing assets of $41.0 million, or 0.29% of total loans and leases and other real estate owned, on December 31, 2025.
Capital
Total stockholders' equity was $2.8 billion at March 31, 2026 and December 31, 2025.
The tier 1 leverage, common equity tier 1 and total capital ratios were 9.21%, 13.12% and 14.37%, respectively, on March 31, 2026, compared with 9.27%, 13.17% and 14.42%, respectively, on December 31, 2025.
The Company repurchased approximately 1.3 million shares of common stock at a total cost of $32.0 million under the stock repurchase program in the first quarter. The average cost was $24.47 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/BI91896a5e1d8b487a89f5948ca1270853, 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, 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 12 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) 525-6268[email protected]
Media Contact:Lindsay Chambers(808) 525-6254[email protected]
Financial Highlights
Table 1
For the Three Months Ended
March 31,
December 31,
March 31,
(dollars in thousands, except per share data)
2026
2025
2025
Operating Results:
Net interest income
$
167,530
$
170,302
$
160,526
Provision for credit losses
5,000
7,700
10,500
Noninterest income
52,819
55,551
50,477
Noninterest expense
127,885
125,102
123,560
Net income
67,784
69,931
59,248
Basic earnings per share
0.55
0.57
0.47
Diluted earnings per share
0.55
0.56
0.47
Dividends declared per share
0.26
0.26
0.26
Dividend payout ratio
47.27
%
46.43
%
55.32
%
Performance Ratios(1):
Net interest margin
3.19
%
3.21
%
3.08
%
Efficiency ratio
57.77
%
55.14
%
58.22
%
Return on average total assets
1.14
%
1.16
%
1.01
%
Return on average tangible assets (non-GAAP)(2)
1.19
%
1.21
%
1.05
%
Return on average total stockholders' equity
9.86
%
10.07
%
9.09
%
Return on average tangible stockholders' equity (non-GAAP)(2)
15.33
%
15.76
%
14.59
%
Average Balances:
Average loans and leases
$
14,289,418
$
14,251,470
$
14,309,998
Average earning assets
21,332,641
21,215,262
21,169,194
Average assets
24,083,280
23,925,000
23,890,459
Average deposits
20,623,573
20,510,346
20,354,040
Average stockholders' equity
2,788,826
2,756,241
2,641,978
Market Value Per Share:
Closing
24.64
25.30
24.44
High
28.35
26.56
28.28
Low
23.26
22.65
23.95
As of
As of
As of
March 31,
December 31,
March 31,
(dollars in thousands, except per share data)
2026
2025
2025
Balance Sheet Data:
Loans and leases
$
14,440,835
$
14,312,529
$
14,293,036
Total assets
24,264,548
23,955,252
23,744,958
Total deposits
20,777,353
20,515,668
20,215,816
Short-term borrowings
—
—
250,000
Total stockholders' equity
2,767,760
2,769,365
2,648,852
Per Share of Common Stock:
Book value
$
22.75
$
22.57
$
21.07
Tangible book value (non-GAAP)(2)
14.57
14.46
13.15
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases
0.27
%
0.29
%
0.14
%
Allowance for credit losses for loans and leases / total loans and leases
1.17
%
1.18
%
1.17
%
Capital Ratios:
Common Equity Tier 1 Capital Ratio
13.12
%
13.17
%
12.93
%
Tier 1 Capital Ratio
13.12
%
13.17
%
12.93
%
Total Capital Ratio
14.37
%
14.42
%
14.17
%
Tier 1 Leverage Ratio
9.21
%
9.27
%
9.01
%
Total stockholders' equity to total assets
11.41
%
11.56
%
11.16
%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)
7.62
%
7.73
%
7.27
%
Non-Financial Data:
Number of branches
49
49
48
Number of ATMs
273
273
273
Number of Full-Time Equivalent Employees
1,986
1,997
1,995
(1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2026, December 31, 2025 and March 31, 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 12, GAAP to Non-GAAP Reconciliation.
Consolidated Statements of Income
Table 2
For the Three Months Ended
March 31,
December 31,
March 31,
(dollars in thousands, except per share amounts)
2026
2025
2025
Interest income
Loans and lease financing
$
186,389
$
192,483
$
192,102
Available-for-sale investment securities
14,884
14,997
13,150
Held-to-maturity investment securities
15,063
15,711
16,647
Other
13,362
13,648
13,251
Total interest income
229,698
236,839
235,150
Interest expense
Deposits
62,064
66,441
71,709
Short-term borrowings
—
—
2,599
Other
104
96
316
Total interest expense
62,168
66,537
74,624
Net interest income
167,530
170,302
160,526
Provision for credit losses
5,000
7,700
10,500
Net interest income after provision for credit losses
162,530
162,602
150,026
Noninterest income
Service charges on deposit accounts
8,156
8,175
7,535
Credit and debit card fees
15,083
15,570
14,474
Other service charges and fees
13,784
13,829
12,167
Trust and investment services income
9,146
9,205
9,370
Bank-owned life insurance
4,091
5,204
4,371
Investment securities gains, net
—
—
37
Other
2,559
3,568
2,523
Total noninterest income
52,819
55,551
50,477
Noninterest expense
Salaries and employee benefits
64,090
64,768
60,104
Contracted services and professional fees
13,964
13,676
14,839
Occupancy
7,816
7,092
8,100
Equipment
14,781
14,550
13,871
Regulatory assessment and fees
3,248
1,204
3,823
Advertising and marketing
2,252
2,326
2,179
Card rewards program
8,404
8,344
7,919
Other
13,330
13,142
12,725
Total noninterest expense
127,885
125,102
123,560
Income before provision for income taxes
87,464
93,051
76,943
Provision for income taxes
19,680
23,120
17,695
Net income
$
67,784
$
69,931
$
59,248
Basic earnings per share
$
0.55
$
0.57
$
0.47
Diluted earnings per share
$
0.55
$
0.56
$
0.47
Basic weighted-average outstanding shares
122,457,604
123,342,709
126,281,802
Diluted weighted-average outstanding shares
123,345,708
124,158,037
127,166,932
Consolidated Balance Sheets
Table 3
March 31,
December 31,
March 31,
(dollars in thousands, except share amount)
2026
2025
2025
Assets
Cash and due from banks
$
225,727
$
228,734
$
240,738
Interest-bearing deposits in other banks
1,493,421
1,249,018
1,073,841
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,270,792 as of March 31, 2026, $2,246,716 as of December 31, 2025 and $2,091,034 as of March 31, 2025)
2,080,004
2,076,233
1,858,428
Held-to-maturity, at amortized cost (fair value: $3,074,133 as of March 31, 2026, $3,188,775 as of December 31, 2025 and $3,250,275 as of March 31, 2025)
3,480,022
3,533,082
3,724,908
Loans held for sale
—
1,370
1,547
Loans and leases
14,440,835
14,312,529
14,293,036
Less: allowance for credit losses
169,318
168,468
166,612
Net loans and leases
14,271,517
14,144,061
14,126,424
Premises and equipment, net
302,807
303,496
292,576
Accrued interest receivable
77,286
77,641
78,973
Bank-owned life insurance
514,069
513,182
495,567
Goodwill
995,492
995,492
995,492
Mortgage servicing rights
4,470
4,638
4,926
Other assets
819,733
828,305
851,538
Total assets
$
24,264,548
$
23,955,252
$
23,744,958
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing
$
14,257,290
$
13,968,376
$
13,330,265
Noninterest-bearing
6,520,063
6,547,292
6,885,551
Total deposits
20,777,353
20,515,668
20,215,816
Short-term borrowings
—
—
250,000
Retirement benefits payable
98,220
99,052
96,241
Other liabilities
621,215
571,167
534,049
Total liabilities
21,496,788
21,185,887
21,096,106
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,627,813 / 121,648,973 shares as of March 31, 2026, issued/outstanding: 142,184,584 / 122,689,256 shares as of December 31, 2025 and issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025)
1,426
1,422
1,421
Additional paid-in capital
2,580,501
2,576,540
2,564,408
Retained earnings
1,114,759
1,078,885
960,337
Accumulated other comprehensive loss, net
(372,747
)
(368,140
)
(433,769
)
Treasury stock (20,978,840 shares as of March 31, 2026, 19,495,328 shares as of December 31, 2025 and 16,446,755 shares as of March 31, 2025)
(556,179
)
(519,342
)
(443,545
)
Total stockholders' equity
2,767,760
2,769,365
2,648,852
Total liabilities and stockholders' equity
$
24,264,548
$
23,955,252
$
23,744,958
Average Balances and Interest Rates
Table 4
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
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
$
1,455.0
$
13.2
3.68
%
$
1,331.8
$
13.2
3.95
%
$
1,171.1
$
12.8
4.44
%
Available-for-Sale Investment Securities
Taxable
2,050.7
14.9
2.91
2,035.3
15.0
2.94
1,891.4
13.2
2.79
Non-Taxable
0.8
—
4.86
0.9
—
4.97
1.4
—
5.52
Held-to-Maturity Investment Securities
Taxable
2,916.5
12.0
1.64
2,973.8
12.6
1.69
3,164.0
13.6
1.72
Non-Taxable
592.6
3.5
2.39
594.3
3.5
2.37
599.0
3.7
2.51
Total Investment Securities
5,560.6
30.4
2.19
5,604.3
31.1
2.22
5,655.8
30.5
2.16
Loans Held for Sale
0.9
—
5.87
0.3
—
5.83
0.3
—
6.28
Loans and Leases(1)
Commercial and industrial
2,170.6
30.8
5.75
2,131.5
31.9
5.94
2,196.8
33.6
6.20
Commercial real estate
4,608.4
65.0
5.72
4,599.2
68.8
5.93
4,420.1
66.5
6.10
Construction
775.5
12.4
6.48
804.5
13.3
6.55
937.0
15.4
6.67
Residential:
Residential mortgage
4,081.8
41.0
4.02
4,081.3
41.0
4.02
4,150.3
40.9
3.94
Home equity line
1,175.4
13.7
4.71
1,175.7
14.0
4.71
1,149.8
13.1
4.61
Consumer
1,034.5
20.0
7.84
1,022.1
19.8
7.70
1,019.5
18.9
7.53
Lease financing
443.2
4.1
3.75
437.2
4.3
3.89
436.5
4.3
3.99
Total Loans and Leases
14,289.4
187.0
5.29
14,251.5
193.1
5.38
14,310.0
192.7
5.44
Other Earning Assets
26.7
0.1
2.52
27.4
0.4
5.69
32.0
0.4
5.48
Total Earning Assets(2)
21,332.6
230.7
4.37
21,215.3
237.8
4.46
21,169.2
236.4
4.51
Cash and Due from Banks
226.4
221.1
235.9
Other Assets
2,524.3
2,488.6
2,485.4
Total Assets
$
24,083.3
$
23,925.0
$
23,890.5
