First Hawaiian (FHB) AI Stock Analysis

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First Hawaiian

(NASDAQ:FHB)

Rating:66Neutral

Price Target:―

First Hawaiian's overall score reflects a moderately strong financial position with stable profitability and a robust capital structure. However, challenges in revenue growth and cash flow sustainability are concerns. The technical indicators suggest potential bearish momentum, but the stock's valuation and dividend yield offer some attraction. The earnings call and corporate events demonstrate solid management and strategic positioning, though macroeconomic uncertainties must be monitored.

Positive Factors

Capital Position

Capital remains in a solid position at 13.0% CET1 with incremental capital deployment remaining a potential opportunity over time.

Loan Growth Opportunities

First Hawaiian is following customers into the mainland US for additional loan growth opportunities.

Negative Factors

Federal Spending Cuts

Fed. spending cuts could also have a disproportionate impact given 1/5 of HI's GDP is government-based.

Tariffs and Visitor Arrivals

Growing risks, as a combination of tariffs and potential for slowing visitor arrivals further dampens the growth outlook and could eventually translate to higher losses.

First Hawaiian (FHB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.97B

Dividend Yield4.42%

Average Volume (3M)781.46K

Price to Earnings (P/E)12.8

Beta (1Y)0.86

Revenue Growth-0.47%

EPS Growth5.97%

CountryUS

Employees1,995

SectorFinancial

Sector Strength82

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.47

Shares Outstanding125,719,315

10 Day Avg. Volume623,744

30 Day Avg. Volume781,457

Financial Highlights & Ratios

PEG Ratio4.42

Price to Book (P/B)1.10

Price to Sales (P/S)0.00

P/FCF Ratio11.03

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$25.50

Price Target Upside8.05% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering4

First Hawaiian Business Overview & Revenue Model

Company DescriptionFirst 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. The company accepts various deposit products, including checking and savings accounts, and other deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, as well as commercial lease and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. It operates a network of 54 branches, which include 49 in Hawaii, 3 in Guam, and 2 in Saipan. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. First Hawaiian, Inc. was founded in 1858 and is headquartered in Honolulu, Hawaii.

How the Company Makes MoneyFirst Hawaiian, Inc. generates revenue primarily through its commercial and consumer banking operations. The company earns money from interest income, which is derived from loans and credit facilities provided to individuals, businesses, and governmental entities. Additionally, it earns revenue from fees and service charges related to various financial products, such as transaction fees, account maintenance charges, and loan origination fees. Another significant revenue stream comes from wealth management and investment services, where the bank provides advisory services and earns fees based on assets under management. Strategic partnerships and collaborations with other financial institutions and service providers further enhance its revenue potential by expanding its product offerings and customer base.

First Hawaiian Financial Statement Overview

Summary

First Hawaiian exhibits moderate financial health, characterized by stable profitability and a strong capital structure. The company faces challenges in maintaining revenue growth and free cash flow stability, which could impact future financial flexibility. Overall, the financials indicate a need for strategic focus on revenue enhancement and cash flow management.

Income Statement

Positive

First Hawaiian has demonstrated stable profitability with a consistent gross profit margin and net profit margin over recent years. However, there was a decline in total revenue from 2023 to 2024, indicating a potential challenge in revenue generation. The absence of EBITDA data for 2024 reduces visibility into operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a strong equity base with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is robust, underscoring financial stability. However, substantial fluctuations in cash and short-term investments could indicate potential liquidity management challenges.

Cash Flow

Neutral

Operating cash flow has been positive, but there is a lack of consistent free cash flow growth. The operating cash flow to net income ratio suggests effective cash generation relative to net income. However, a significant decrease in free cash flow from 2023 to 2024 raises concerns about cash flow sustainability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.07B	774.71M	1.13B	762.08M	690.23M	711.00M
	Gross Profit
780.19M	774.71M	1.12B	762.08M	690.23M	711.00M
	EBIT
92.19M	706.08M	0.00	400.88M	349.00M	243.72M
	EBITDA
163.23M	0.00	-24.18M	407.96M	400.84M	306.80M
	Net Income Common Stockholders
235.16M	230.13M	234.98M	265.69M	265.74M	185.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.26B	258.06M	1.74B	8.00B	1.26B	1.04B
	Total Assets
23.50B	23.83B	24.93B	24.58B	24.99B	22.66B
	Total Debt
200.01M	250.00M	500.00M	75.00M	65.80M	200.01M
	Net Debt
-1.06B	-8.06M	-1.24B	-451.62M	-1.19B	-840.93M
	Total Liabilities
20.81B	21.21B	22.52B	22.31B	22.41B	200.01M
	Stockholders Equity
2.68B	2.62B	2.49B	2.27B	2.66B	2.74B
Cash Flow		Free Cash Flow
263.68M	288.74M	239.04M	417.32M	396.67M	176.12M
	Operating Cash Flow
287.59M	317.51M	255.03M	430.61M	417.13M	209.51M
	Investing Cash Flow
657.62M	548.55M	1.03B	-965.10M	-2.38B	-2.10B
	Financing Cash Flow
-905.06M	-1.44B	-66.92M	-197.36M	2.18B	2.24B

First Hawaiian Technical Analysis

Technical Analysis Sentiment

Negative

Last Price23.60

Price Trends

50DMA

23.27

Positive

100DMA

24.62

Negative

200DMA

24.38

Negative

Market Momentum

MACD

0.25

Negative

RSI

51.10

Neutral

STOCH

27.63

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Negative. The current price of 23.6 is above the 20-day moving average (MA) of 23.46, above the 50-day MA of 23.27, and below the 200-day MA of 24.38, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 27.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHB.

First Hawaiian Risk Analysis

First Hawaiian disclosed 51 risk factors in its most recent earnings report. First Hawaiian reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

First Hawaiian Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBP	77 Outperform	$3.25B	10.94	18.55%	3.24%	4.84%	4.75%
BOH	71 Outperform	$2.66B	18.78	10.03%	4.14%	2.95%	-7.85%
FIBK	69 Neutral	$2.78B	12.55	6.63%	7.11%	-0.05%	-15.66%
CATY	69 Neutral	$3.02B	10.89	10.07%	3.11%	2.76%	-12.43%
TFSL	67 Neutral	$3.69B	45.78	4.22%	8.60%	8.99%	3.89%
FHB	66 Neutral	$2.97B	12.85	9.11%	4.42%	-0.47%	5.97%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.24%	-6.02%

* Financial Sector Average

Performance Comparison

FHB

First Hawaiian

23.60

3.85

19.49%

BOH

Bank Of Hawaii

66.89

12.33

22.60%

CATY

Cathay General Bancorp

42.85

7.72

21.98%

FBP

First Bancorp Puerto Rico

20.23

2.84

16.33%

FIBK

First Interstate Bancsystem

26.61

1.18

4.64%

TFSL

TFS Financial

13.16

1.31

11.05%

First Hawaiian Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 2.43%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Neutral

The earnings call highlights a stable economic environment and strong internal financial management, with improvements in unemployment, visitor spending, and credit quality. However, challenges remain with declining commercial real estate loans, deposit fluctuations, and increased macroeconomic uncertainty.

Q1-2025 Updates

Positive Updates

Stable Unemployment and Increased Visitor Spending

Statewide unemployment remains stable at 3%, better than the national rate of 4.1%. Visitor arrivals increased by 1% and spending by 4.5% compared to the previous year.

Controlled Expenses and Improved Net Interest Margin

Net interest income increased by $1.8 million from the prior quarter, driven by lower deposit costs and investment portfolio restructuring, resulting in a 5 basis point increase in NIM.

Strong Credit Quality

The bank maintained excellent credit quality with nonperforming assets and 90-day past due loans at 17 basis points, down 2 basis points from the prior quarter.

Successful Stock Repurchase

Repurchased about 974,000 shares at a total cost of $25 million, with $75 million remaining in the 2025 stock repurchase plan.

Negative Updates

Decline in Commercial Real Estate Loans

Total loans declined by $115 million or 0.8% from the prior quarter, primarily due to commercial real estate loans experiencing payoffs and large credits.

Slight Decline in Total Deposits

Total deposits declined slightly, with commercial deposits falling by $167 million, offsetting the $105 million increase in retail deposits.

Increased Economic Uncertainty

Acknowledged increased uncertainty in the macroeconomic environment, affecting outlook and decision-making.

Company Guidance

In the First Hawaiian Bank's first-quarter 2025 earnings call, several key financial metrics and guidance were highlighted. The bank reported a 5 basis point increase in net interest margin (NIM) due to declining deposit costs and investment portfolio restructuring. Net interest income rose to $160.5 million, $1.8 million higher than the previous quarter. Total loans declined by $115 million, or 0.8%, mainly due to payoffs in commercial real estate loans, while retail deposits increased by $105 million, and commercial deposits decreased by $167 million. The total cost of deposits fell by 11 basis points during the quarter. Noninterest income and expenses were stable at $50.5 million and $123.6 million, respectively. The bank's credit risk remained low, with classified assets decreasing by $3 million and nonperforming assets at 17 basis points. The allowance for credit losses increased to $166.6 million, reflecting a more pessimistic economic forecast. Additionally, the bank repurchased 974,000 shares, costing $25 million, with $75 million remaining under the 2025 stock repurchase plan. Despite uncertainties in the economy, the bank maintained its outlook for low to mid-single-digit loan growth for the year, emphasizing strong credit quality and robust deposit performance.

First Hawaiian Corporate Events

Business Operations and StrategyFinancial Disclosures

First Hawaiian Unveils 2025 Investor Presentation Highlights

Positive

Feb 10, 2025

First Hawaiian, Inc. has announced that it will be using a newly prepared investor presentation for meetings and interactions in 2025, which will also be available on its website. This presentation outlines its strong financial performance and highlights its dominant position in attractive markets. It emphasizes the company’s consistent underwriting standards, disciplined expense management, and favorable deposit behavior compared to broader U.S. banks. First Hawaiian Bank’s proven track record through various market cycles reinforces its stability and leadership in the banking sector, particularly in Hawaii.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.