First Hawaiian, Inc. Delivers Solid First Quarter 2026 Performance: Key Details for Investors

HONOLULU, Hawaii, April 24, 2026 – First Hawaiian, Inc. (NASDAQ:FHB), the largest financial institution in Hawaii, has released its financial results for the first quarter ended March 31, 2026. The company reported stable performance with positive developments across its core business lines, capital management, and asset quality. Below, we break down the crucial details every investor and shareholder should know.

Key Highlights of Q1 2026 Results

• Net Income: \$67.8 million, translating to \$0.55 per diluted share. This is a slight decrease compared to \$69.9 million (\$0.56 per diluted share) in the prior quarter, but remains robust year-on-year.
• Dividend Declaration: The Board of Directors declared a quarterly cash dividend of \$0.26 per share, payable on May 29, 2026, to shareholders of record as of May 18, 2026. The dividend payout ratio stands at 47.27%.
• Loan and Deposit Growth:
  • Total loans and leases increased by \$128.3 million quarter-over-quarter, reaching \$14.44 billion.
  • Total deposits grew by \$261.7 million, reaching \$20.78 billion.
• Net Interest Income & Margin:
  • Net interest income was \$167.5 million, down \$2.8 million from the prior quarter.
  • Net interest margin declined by 2 basis points to 3.19%.
• Provision for Credit Losses: The company recorded a provision of \$5.0 million, lower than the \$7.7 million in Q4 2025, reflecting continued asset quality stability.
• Noninterest Income & Expense:
  • Noninterest income came in at \$52.8 million, down \$2.7 million from the previous quarter.
  • Noninterest expense increased to \$127.9 million, up \$2.8 million from Q4 2025. The efficiency ratio increased to 57.8% from 55.1% in the prior quarter.
• Tax Rate: Effective tax rate for the quarter was 22.5%, down from 24.8%.

Balance Sheet and Capital Strength

• Total Assets: \$24.26 billion as of March 31, 2026, up from \$23.96 billion at the end of 2025.
• Stockholders’ Equity: \$2.77 billion, virtually unchanged from the prior quarter.
• Capital Ratios:
  • Tier 1 leverage ratio: 9.21%
  • Common equity tier 1 ratio: 13.12%
  • Total capital ratio: 14.37%
• Share Repurchases: The company repurchased approximately 1.3 million shares, totaling \$32.0 million at an average cost of \$24.47 per share. This capital action is a strong signal of management’s confidence in the company’s intrinsic value and capital position.

Asset Quality Remains Strong

• Allowance for Credit Losses: \$169.3 million, 1.17% of total loans and leases, consistent with the prior period.
• Net Charge-Offs: \$4.9 million, or 0.14% of average loans and leases, essentially unchanged from Q4 2025.
• Non-Performing Assets: \$39.7 million, or 0.27% of total loans and leases and other real estate owned, down from \$41.0 million (0.29%) at year-end 2025.

Other Notable Developments

• Community Support: The bank continues its commitment to local communities, supporting disaster recovery efforts in Hawaii, Guam, and Saipan following recent natural disasters.
• Branch Network: 49 branches and 273 ATMs across Hawaii, Guam, and Saipan, with 1,986 full-time equivalent employees.

Performance and Shareholder Value Metrics

• Return on Average Assets: 1.14%
• Return on Average Tangible Assets (Non-GAAP): 1.19%
• Return on Average Equity: 9.86%
• Return on Average Tangible Equity (Non-GAAP): 15.33%
• Book Value Per Share: \$22.75
• Tangible Book Value Per Share: \$14.57
• Tangible Equity to Tangible Assets: 7.62%

Potential Price-Sensitive Information

• Dividend Consistency: Quarterly dividend maintained at \$0.26 per share, indicating stable capital return to shareholders.
• Share Buyback Program: Significant repurchases at a price below book value may be viewed positively by the market.
• Credit Quality: Stable asset quality metrics and lower provision for credit losses signal effective risk management. Any deterioration here would be price sensitive, but the stability should reassure investors.
• Net Interest Income Pressure: Slight decrease in net interest income and margin may raise concerns about future earnings momentum, especially if the trend continues.
• Noninterest Expense Increase: Efficiency ratio deterioration (rise from 55.1% to 57.8%) is noteworthy. Investors should monitor cost trends closely.
• Share Count Reduction: Share repurchases reduce outstanding shares, which can be accretive to EPS and support the share price.

Forward-Looking Statements & Conference Call Details

Management will host a conference call to discuss these results on April 24, 2026, at 1:00 p.m. ET (7:00 a.m. Hawaii time), accessible via phone and webcast. Investors are encouraged to join for further insights and Q&A.

Summary

First Hawaiian, Inc. delivered a steady first quarter, with increases in core loans and deposits, solid capital ratios, ongoing shareholder returns via dividends and buybacks, and continued high asset quality. While net interest income and margin saw slight pressure, the bank’s capital and credit metrics provide a foundation for stability. Investors should pay attention to expense trends and margin dynamics in upcoming quarters, but overall, the results reflect prudent management and shareholder focus.

Disclaimer: The information above is provided for informational purposes only and does not constitute investment advice, solicitation, or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those stated.

View FIRST HAWAIIAN, INC. Historical chart here