First Hawaiian Inc (FHB)
NASDAQ:FHB
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First Hawaiian
(NASDAQ:FHB)
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Rating:70Outperform
Price Target:
$27.00
â–²(10.07% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid financial fundamentals (improving profitability and a strong balance sheet) and supportive valuation (low P/E with a ~4.2% dividend). These positives are tempered by weak technical momentum (below key moving averages with negative MACD) and earnings-call headwinds around deposit mix/outflows and NIM sensitivity to Fed cuts and competition.
Positive Factors
Capital Strength
First Hawaiian reports CET1 above its ~12% internal target, reflecting a well-capitalized buffer versus regulatory and internal thresholds. This durable capital strength supports lending capacity, buybacks and shock absorption through economic cycles, preserving strategic optionality over months.
Negative Factors
NIM Sensitivity to Rate Cuts and Competition
NIM and earnings are structurally exposed to rate-cycle moves and competition for loan/deposit pricing. If Fed cuts occur or competitors price aggressively, deposit betas and loan yields can compress margins, limiting durable net interest income and return-on-assets over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital Strength
First Hawaiian reports CET1 above its ~12% internal target, reflecting a well-capitalized buffer versus regulatory and internal thresholds. This durable capital strength supports lending capacity, buybacks and shock absorption through economic cycles, preserving strategic optionality over months.
Read all positive factors
First Hawaiian (FHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.97B
Dividend Yield3.96%
Average Volume (3M)1.43M
Price to Earnings (P/E)11.4
Beta (1Y)0.84
Revenue Growth-4.45%
EPS Growth16.92%
CountryUS
Employees1,995
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.56
Shares Outstanding122,689,255
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 Cap0.93
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda7.30
Forecast
1Y Price Target
$28.10Price Target Upside14.55% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)2.23
Revenue Forecast (FY)$901.50M
First Hawaiian Business Overview & Revenue Model
Company Description
First 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 Ban...
How the Company Makes Money
First Hawaiian Bank generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and commissions. Key revenue streams include consumer and commercial loans, which provide interest...
First Hawaiian Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: solid profitability, expanding margins, strong capital and liquidity, conservative credit metrics, and clear 2026 guidance. Identified headwinds (public deposit outflows, earlier-than-expected CRE payoffs, a small uptick in NPAs tied to a single relationship, a temporary tax-rate anomaly, expense normalization and some competitive spread pressure) are notable but appear manageable. Management articulated reasonable assumptions for NIM and loan growth and provided a larger, flexible buyback authorization, reinforcing confidence in capital positioning.Positive Updates
Strong Profitability and Margin
Net interest income of $170.3 million in Q4, up $1 million QoQ; NIM expanded to 3.21% in Q4 (up 2 bps QoQ) with an exit December NIM of 3.21%. Return on average tangible equity 15.8% in Q4 and 16.3% for the full year.
Negative Updates
Public Deposit Outflows
Public operating deposits declined $447 million in Q4 (as expected), representing a material outflow that required retail and commercial deposit growth to offset; dynamic impacted quarter-to-quarter deposit composition.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profitability and Margin
Net interest income of $170.3 million in Q4, up $1 million QoQ; NIM expanded to 3.21% in Q4 (up 2 bps QoQ) with an exit December NIM of 3.21%. Return on average tangible equity 15.8% in Q4 and 16.3% for the full year.
Read all positive updates
Company Guidance
Management guided 2026 to full‑year loan growth of 3–4% (driven by CRE and C&I), a full‑year NIM of 3.16%–3.18% (Q4 exit NIM 3.21%; a small Q1 pullback expected and sensitivity to two Fed cuts), noninterest income of about $220 million, and noninterest expense of about $520 million; they expect deposit dynamics to help margins (total cost of deposits down 9 bps to 1.29% in Q4, noninterest‑bearing deposits 32%, Q4 interest‑bearing deposit beta ~35% stepping down to 30–35% after two cuts), roughly $400 million of fixed‑rate cash‑flow repricing per quarter (Q4 ≈ $385M) with ~150 bps accretion, an effective tax rate normalizing to ~23.2%, continued strong credit metrics (ACL $168.5M, coverage 118 bps; Q4 provision $7.7M; QTD net charge‑offs $5M or 14 bps; annual NCO rate 11 bps; NPAs 31 bps), and capital flexibility (repurchased ~1M shares using $26M of prior $100M authorization, new $250M buyback authorization, CET1 >13% vs. a ~12% target).First Hawaiian Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.17B | 1.13B | 1.09B | 811.75M | 708.98M |
| Gross Profit | 853.59M | 759.96M | 778.68M | 760.69M | 729.23M |
| EBITDA | 354.24M | 330.61M | 351.94M | 407.96M | 400.84M |
| Net Income | 276.27M | 230.13M | 234.98M | 265.69M | 265.74M |
Balance Sheet | |||||
| Total Assets | 23.96B | 23.83B | 24.93B | 24.58B | 24.99B |
| Cash, Cash Equivalents and Short-Term Investments | 228.73M | 1.18B | 4.00B | 3.68B | 9.69B |
| Total Debt | 0.00 | 250.00M | 500.00M | 75.00M | 0.00 |
| Total Liabilities | 21.19B | 21.21B | 22.44B | 22.31B | 22.34B |
| Stockholders Equity | 2.77B | 2.62B | 2.49B | 2.27B | 2.66B |
Cash Flow | |||||
| Free Cash Flow | 303.29M | 288.74M | 239.04M | 417.32M | 396.67M |
| Operating Cash Flow | 335.07M | 317.51M | 255.03M | 430.61M | 417.13M |
| Investing Cash Flow | 264.11M | 548.55M | 1.03B | -965.10M | -2.38B |
| Financing Cash Flow | -291.62M | -1.44B | -66.92M | -197.36M | 2.18B |
First Hawaiian Technical Analysis
Neutral
24.53
Price Trends
25.67
Negative
25.34
Negative
24.77
Negative
Market Momentum
-0.48
Negative
47.52
Neutral
59.66
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 24.53 is above the 20-day moving average (MA) of 24.45, below the 50-day MA of 25.67, and below the 200-day MA of 24.77, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 59.66 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.26B | 9.05 | 10.89% | 2.72% | -1.59% | 9.34% | |
74 Outperform | $3.41B | 10.45 | 10.61% | 1.16% | -3.62% | 10.83% | |
70 Outperform | $2.97B | 11.43 | 9.62% | 3.96% | -4.45% | 16.92% | |
70 Outperform | $3.26B | 8.17 | 5.67% | 4.35% | 41.49% | -5.53% | |
68 Neutral | $3.35B | 11.75 | 8.83% | 5.24% | -5.43% | 4.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.67B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% |
* Financial Sector Average
FHB
First Hawaiian
24.53
0.69
2.88%
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WSBC
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33.87
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WSFS
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23.26%
First Hawaiian Corporate Events
Business Operations and StrategyFinancial Disclosures
First Hawaiian Highlights Strong Capital and Strategic Positioning
Positive
Feb 6, 2026
On February 2026, First Hawaiian, Inc. released an investor presentation outlining its financial profile and strategic positioning, highlighting $24.0 billion in assets, $20.5 billion in deposits, $14.3 billion in loans, and a strong capital base ...
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.