First Hawaiian Inc
NASDAQ:FHB
First Hawaiian Inc
First Hawaiian Inc., the bank holding entity of First Hawaiian Bank, holds a position of distinction as the oldest and largest financial institution headquartered in Hawaii. With its roots tracing back to 1858, the bank exemplifies a blend of deep-seated tradition and modern adaptability, enabling it to thrive across the Pacific. It operates a network of branches and ATMs not just in Hawaii, but also on the neighboring islands and locations such as Guam and Saipan. This expansive reach caters to a diverse clientele, providing a gamut of financial services that include personal banking, business banking, wealth management, and insurance products. Its robust local presence is complemented by a refined understanding of the unique economic environment in these regions, allowing it to tailor offerings that align with the specific needs of its customers.
The bank generates revenue through a classic banking model — earning money primarily from the interest rate spread between deposits and loans. This involves taking deposits from customers, for which it pays interest, and then lending that money at a higher rate to other consumers and businesses. Additionally, the bank bolsters its income through various non-interest sources. These include fees from ATM transactions, account service charges, and wealth management advice. Moreover, its well-integrated suite of services, from commercial lending to personal wealth advisory, ensures that First Hawaiian Inc. can cater to individual customer needs while also serving commercial enterprises, an approach that strengthens customer relations and enhances long-term profitability.
First Hawaiian Inc., the bank holding entity of First Hawaiian Bank, holds a position of distinction as the oldest and largest financial institution headquartered in Hawaii. With its roots tracing back to 1858, the bank exemplifies a blend of deep-seated tradition and modern adaptability, enabling it to thrive across the Pacific. It operates a network of branches and ATMs not just in Hawaii, but also on the neighboring islands and locations such as Guam and Saipan. This expansive reach caters to a diverse clientele, providing a gamut of financial services that include personal banking, business banking, wealth management, and insurance products. Its robust local presence is complemented by a refined understanding of the unique economic environment in these regions, allowing it to tailor offerings that align with the specific needs of its customers.
The bank generates revenue through a classic banking model — earning money primarily from the interest rate spread between deposits and loans. This involves taking deposits from customers, for which it pays interest, and then lending that money at a higher rate to other consumers and businesses. Additionally, the bank bolsters its income through various non-interest sources. These include fees from ATM transactions, account service charges, and wealth management advice. Moreover, its well-integrated suite of services, from commercial lending to personal wealth advisory, ensures that First Hawaiian Inc. can cater to individual customer needs while also serving commercial enterprises, an approach that strengthens customer relations and enhances long-term profitability.
Loan Growth: Total loans grew by $183 million in Q4, or 5.2% annualized, with strength in C&I lending and a new auto dealer relationship.
Deposit Dynamics: Deposits increased by $214 million in Q4, as retail and commercial deposit growth offset a decline in public deposits.
Margin Expansion: Net interest margin (NIM) rose 2 basis points to 3.21% in the quarter, driven by lower deposit costs and maturing borrowings.
Expense Control: Expenses were well-contained, with Q4 noninterest expense at $125.1 million, and 2026 expense guidance set at $520 million.
Credit Quality: Credit metrics remained strong, with low net charge-offs and stable asset quality.
2026 Guidance: The bank expects 3–4% full-year loan growth, NIM of 3.16–3.18%, stable noninterest income around $220 million, and expenses of $520 million.
Share Buyback: The company completed its previous $100 million buyback and authorized a new $250 million program without a set timeframe.
