First Hawaiian (NASDAQ:FHB) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

First Hawaiian (NASDAQ:FHB) announced its quarterly earnings data on Friday. The bank reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.07), FiscalAI reports. The business had revenue of $230.23 million during the quarter, compared to analysts’ expectations of $229.20 million. First Hawaiian had a net margin of 24.41% and a return on equity of 10.27%. During the same period in the prior year, the firm earned $0.59 EPS.

Here are the key takeaways from First Hawaiian’s conference call:

• Acquisition remains on track: First Hawaiian expects to close the TriCo Bancshares transaction in the fourth quarter, with shareholder meetings scheduled for October 29 and integration planning progressing. Management emphasized that retaining TriCo’s local operating model is a priority.
• Margin and net interest income improved: Third-quarter net interest income rose to $174.1 million and net interest margin increased five basis points to 3.30%, helped by stronger asset yields and lower funding costs. Fourth-quarter NIM is expected at 3.34%–3.35%.
• Loan-growth outlook was reduced: Management lowered full-year loan-growth guidance to 1%–2% from 3%–4% after unexpected commercial real estate payoffs, lower dealer floor-plan balances and continued residential-loan runoff.
• Credit metrics weakened during the quarter: Net charge-offs increased to $21.9 million, or 60 basis points of loans, primarily due to a partial charge-off on a downtown Seattle office loan. Criticized assets also rose following four commercial real estate downgrades, although management characterized the issues as limited and largely isolated.
• Funding-cost benefits may be near a trough: Deposits grew by approximately $50 million and total deposit costs declined three basis points, but management expects deposit costs to stabilize at current levels as competitive pressures and potential rate changes limit further improvement.

First Hawaiian Trading Down 3.0%

Shares of FHB opened at $25.34 on Friday. The firm has a market capitalization of $3.08 billion, a P/E ratio of 11.02, a price-to-earnings-growth ratio of 1.35 and a beta of 0.76. The stock’s fifty day simple moving average is $25.51 and its 200 day simple moving average is $26.98. First Hawaiian has a twelve month low of $23.26 and a twelve month high of $30.58.

First Hawaiian Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Monday, November 16th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Monday, November 16th. First Hawaiian’s dividend payout ratio is presently 45.22%.

Key First Hawaiian News

Here are the key news stories impacting First Hawaiian this week:

• Positive Sentiment: Third-quarter revenue reached $230.23 million, topping analyst expectations of $229.20 million. The result indicates that the bank’s underlying revenue generation remained resilient. Earnings Flash: First Hawaiian Reports Third-Quarter Revenue
• Positive Sentiment: Management declared a dividend alongside the third-quarter results, supporting the stock’s income appeal. First Hawaiian’s return on equity was 10.27%, while its net margin was 24.41%. First Hawaiian Reports Third-Quarter Results and Declares Dividend
• Positive Sentiment: An analyst review characterized Hawaii’s island economy as robust, providing a relatively supportive backdrop for First Hawaiian’s lending and banking operations. First Hawaiian Bank: Island Economy Remains Robust
• Neutral Sentiment: The third-quarter earnings call and related transcripts provide additional management commentary on credit quality, loan trends, expenses and outlook, but the supplied reports do not identify a specific new catalyst from the discussion. First Hawaiian Q3 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted earnings were $0.52 per share, missing the roughly $0.59–$0.60 consensus estimate by $0.07–$0.08. EPS also declined from $0.59 in the year-earlier quarter, making the earnings shortfall the primary reason for the negative stock reaction. First Hawaiian Lags Third-Quarter Earnings Estimates

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Stephens upgraded First Hawaiian from an “equal weight” rating to an “overweight” rating and set a $33.00 target price on the stock in a research report on Thursday, August 6th. JPMorgan Chase & Co. upgraded First Hawaiian from an “underweight” rating to a “neutral” rating and lowered their price target for the company from $30.00 to $29.00 in a report on Thursday, October 1st. Zacks Research downgraded shares of First Hawaiian from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 13th. Weiss Ratings reiterated a “buy (b)” rating on shares of First Hawaiian in a report on Friday, October 2nd. Finally, Piper Sandler decreased their target price on shares of First Hawaiian from $30.00 to $27.00 and set a “neutral” rating on the stock in a research report on Thursday, October 1st. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $29.00.

First Hawaiian Company Profile

First Hawaiian, Inc is the parent company of First Hawaiian Bank, a regional financial institution headquartered in Honolulu, Hawaii. Founded in 1858, First Hawaiian Bank is the oldest bank in Hawaii and serves consumers, businesses, and government entities across the Pacific.

The bank provides a broad range of financial products and services, including checking and savings accounts, consumer and residential loans, commercial lending, credit cards, treasury management, investment and wealth management services, and online and mobile banking.