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First Hawaiian
(NASDAQ:FHB)
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Rating:69Neutral
Price Target:
$31.00
â–²(10.28% Upside)
Action:Downgraded
Date:08/04/26
The score is driven primarily by solid underlying financial stability (notably the conservative leverage profile and steady returns) and reasonable valuation (P/E ~12 with a 3.74% yield). These positives are tempered by weaker near-term technical signals and softer operating momentum (revenue and cash flow declines), while the latest earnings call supports a steady outlook via improving NIM and guided loan growth but highlights deposit outflows and higher deal-related costs.
Positive Factors
Conservative balance sheet and capital
Zero reported debt and a conservative leverage profile, combined with CET1 above 13%, provide durable loss-absorption and funding flexibility. This reduces insolvency risk, supports lending through cycles, and preserves capacity to fund growth or M&A over the next several months.
Negative Factors
Material deposit outflows
Sustained deposit runoff reduces low‑cost funding and forces reliance on higher‑cost funding or shrinking cash balances. Over 2–6 months this can compress loan capacity, elevate funding costs, and increase margin and liquidity pressure absent stable deposit reaccumulation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and capital
Zero reported debt and a conservative leverage profile, combined with CET1 above 13%, provide durable loss-absorption and funding flexibility. This reduces insolvency risk, supports lending through cycles, and preserves capacity to fund growth or M&A over the next several months.
Read all positive factors
First Hawaiian (FHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.38B
Dividend Yield3.74%
Average Volume (3M)1.43M
Price to Earnings (P/E)12.0
Beta (1Y)0.86
Revenue Growth1.42%
EPS Growth19.06%
CountryUS
Employees2,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.32
Shares Outstanding121,676,250
10 Day Avg. Volume1,380,513
30 Day Avg. Volume1,430,862
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)1.14
Price to Sales (P/S)2.70
P/FCF Ratio10.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.38Price Target Upside8.06% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering11
EPS Forecast (FY)2.34
Revenue Forecast (FY)$917.43M
First Hawaiian Business Overview & Revenue Model
Company Description
First Hawaiian, Inc. operates as the holding company for First Hawaiian Bank, providing an extensive array of financial services to both individual consumers and commercial entities throughout the United States. Its activities are organized across...
How the Company Makes Money
First Hawaiian primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest and fees collected on earning assets (most importantly loans such as commercial loans, ...
First Hawaiian Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call emphasized several operational and financial strengths: sequential loan growth (3.6% annualized), margin expansion (NIM +6 bps to 3.25%), solid profitability (ROATCE 16.34%), strong credit metrics, and a strategically important acquisition (TriCo) expected to create scale. Offsetting items include meaningful deposit outflows (-$623 million, primarily public), lower cash balances, upcoming transaction/integration costs that will increase expenses, paused buybacks, and continued softness in residential lending. Overall, the company presented a fundamentally sound performance with manageable near-term headwinds tied largely to deposits and deal-related costs.Positive Updates
Loan Growth
Total loans grew $137 million in Q2, approximately 3.6% on an annualized basis, led by a $98 million increase in C&I balances (dealer flooring and Hawaii corporate) and $95 million of construction loans converting to CRE.
Negative Updates
Deposit Outflows — Public and Commercial
Total deposits declined $623 million in Q2, driven primarily by $467 million of public deposit outflows (operating accounts and $115 million public time deposits rolling off) and approximately $156 million decline in commercial deposits; retail deposits were essentially flat.
Read all updates
Q2-2026 Updates
Positive
Negative
Loan Growth
Total loans grew $137 million in Q2, approximately 3.6% on an annualized basis, led by a $98 million increase in C&I balances (dealer flooring and Hawaii corporate) and $95 million of construction loans converting to CRE.
Read all positive updates
Company Guidance
Management guided to full‑year loan growth of 3–4% and revised full‑year NIM to 3.24%–3.25% (Q2 NIM was 3.25%, +6 bps QoQ; Q3 NIM ~3.27%), with full‑year noninterest income about $220M and reported expenses (excluding TriCo transaction costs) of $515M–$520M. Q2 metrics included total loans +$137M (~3.6% annualized), net interest income $171M, noninterest income $60.3M, noninterest expense $130.4M (including $4.2M of TriCo costs), total deposits down $623M (public deposits down $467M), total cost of deposits down 2 bps, noninterest‑bearing deposit ratio 32%, cash balances to be maintained near Q2 levels (~$1B), effective tax rate 22.9%, ROAA 1.28% and ROTAE 16.34%. Management incorporated the market expectation of one rate hike later this year (they noted a likely early‑Q4 hike), highlighted roughly $6B of assets and $3.5–4B of liabilities that reprice quickly to SOFR, reported CET1 above 13%, and said buybacks are unlikely through year‑end as the TriCo deal closes.First Hawaiian Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 976.30M | 1.17B | 1.13B | 1.09B | 811.75M | 708.98M |
| Gross Profit | 690.08M | 853.59M | 759.96M | 778.68M | 760.69M | 729.23M |
| EBITDA | 205.39M | 387.81M | 330.61M | 351.94M | 407.96M | 400.84M |
| Net Income | 284.93M | 276.27M | 230.13M | 234.98M | 265.69M | 265.74M |
Balance Sheet | ||||||
| Total Assets | 23.65B | 23.96B | 23.83B | 24.93B | 24.58B | 24.99B |
| Cash, Cash Equivalents and Short-Term Investments | 263.76M | 228.73M | 1.18B | 4.00B | 3.68B | 9.69B |
| Total Debt | 0.00 | 0.00 | 250.00M | 500.00M | 75.00M | 0.00 |
| Total Liabilities | 20.82B | 21.19B | 21.21B | 22.44B | 22.31B | 22.34B |
| Stockholders Equity | 2.83B | 2.77B | 2.62B | 2.49B | 2.27B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | 322.41M | 303.29M | 288.74M | 239.04M | 417.32M | 396.67M |
| Operating Cash Flow | 334.88M | 335.07M | 317.51M | 255.03M | 430.61M | 417.13M |
| Investing Cash Flow | -177.77M | 264.11M | 548.55M | 1.03B | -965.10M | -2.38B |
| Financing Cash Flow | -543.65M | -291.62M | -1.44B | -66.92M | -197.36M | 2.18B |
First Hawaiian Technical Analysis
Neutral
28.11
Price Trends
28.44
Negative
27.16
Positive
26.11
Positive
Market Momentum
-0.27
Positive
40.05
Neutral
21.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Neutral. The current price of 28.11 is below the 20-day moving average (MA) of 28.51, below the 50-day MA of 28.44, and above the 200-day MA of 26.11, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.42B | 12.10 | 19.03% | 2.64% | 2.45% | 26.38% | |
76 Outperform | $3.15B | 14.77 | 12.78% | 3.33% | 1.90% | 41.02% | |
76 Outperform | $1.03B | 12.55 | 14.00% | 2.92% | 5.05% | 39.76% | |
69 Neutral | $3.38B | 11.98 | 10.27% | 3.70% | 1.42% | 19.06% | |
69 Neutral | $2.72B | 11.21 | 8.50% | 2.96% | -4.62% | 21.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $2.95B | -46.71 | -0.62% | 2.07% | -12.95% | -161.72% |
* Financial Sector Average
FHB
First Hawaiian
27.49
4.54
19.78%
BOH
Bank Of Hawaii
79.28
18.43
30.30%
CPF
Central Pacific Financial
38.90
12.92
49.75%
FBP
First Bancorp Puerto Rico
28.67
8.73
43.77%
BANC
Banc of California
18.73
4.54
31.98%
WAFD
Washington Federal
37.16
8.38
29.11%
First Hawaiian Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
First Hawaiian Announces Transformative All-Stock Acquisition of TriCo
Positive
Jul 13, 2026
On July 12, 2026, First Hawaiian entered into a definitive all‑stock agreement to acquire TriCo Bancshares, announced publicly on July 13, 2026, in a transaction that will create a combined bank with about $34 billion in assets and the sixth...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.