First Hawaiian (FHB) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.84
• Revenue Growth: -4.45%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 123,719,580
• 10 Day Avg. Volume: 1,380,513
• 30 Day Avg. Volume: 1,430,862
• PEG Ratio: 0.50
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 13.53
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 7.46
• 1Y Price Target: $28.10
• Price Target Upside: 13.49% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.24
• Revenue Forecast (FY): $901.50M

• Rating: 70 Outperform
• Price Target: $27.00 ▲(9.05% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 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.

Improving Profitability and Margins

Margin expansion and improving ROE indicate stronger core earnings power driven by NII and expense discipline. Sustained higher net margin boosts internal capital generation and provides a durable earnings cushion that can support lending growth and shareholder returns over a multi-month horizon.

Low-cost, Diversified Deposit Franchise

A large share of noninterest-bearing deposits and declining deposit costs provide a structurally cheaper funding base than peers. This deposit mix, combined with diversified retail/commercial inflows across Hawaii and nearby markets, supports margin sustainability and funding stability over several quarters.

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.

Public Deposit Volatility

Material public deposit outflows highlight concentration and volatility in a slice of the funding base. Sustained or repeat withdrawals force reliance on pricier retail/commercial deposits or wholesale funding, which can raise funding costs and compress margins for months unless composition stabilizes.

Asset-quality Concentration Risk

An uptick in NPAs tied to a single relationship underscores borrower concentration risk in the portfolio. Large credits can cause outsized volatility in provisions and earnings if stress widens, reducing credit predictability and increasing downside risk over a multi-month timeframe.

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 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 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 income, and deposit accounts that generate fee-based income. Additionally, FHB earns money through wealth management services and investment products. The bank also benefits from partnerships with local businesses and government entities, enhancing its service offerings and customer base, thereby contributing to its overall earnings.

First Hawaiian Financial Statement Overview

Summary

Overall fundamentals look solid: steady revenue growth and improved 2025 profitability (net margin ~24% vs. ~20% in 2024). Balance sheet quality is a strength with improving ROE (~10% in 2025) and conservative leverage signals, though the drop of total debt to 0.00 in 2025 is a reporting/classification watch item. Cash flow remains positive but is choppy, with a sharp 2025 free-cash-flow decline (~24% YoY) limiting visibility.

Income Statement

Revenue has expanded steadily over the last several years (2021–2025 annual), with 2025 showing mid-single-digit growth. Profitability remains solid for a regional bank, with net margin improving from ~20% (2024) to ~24% (2025) and operating profitability also strengthening year over year. The main offset is margin volatility versus the exceptionally strong 2021–2022 levels, suggesting earnings power can fluctuate with the rate/credit cycle.

Balance Sheet

Leverage appears conservative based on the provided debt figures, with debt-to-equity trending down to ~0.10 (2024) and shown at 0.00 in 2025, alongside a steadily growing equity base. Returns on equity are healthy and improving (roughly ~8.8% in 2024 to ~10.0% in 2025), supporting the quality of the balance sheet. A key watch item is that the reported total debt drops to zero in 2025 after being meaningful in prior years, which may reflect classification/reporting changes rather than a purely economic shift.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow remaining positive across all years and free cash flow roughly matching net income in 2025. However, free cash flow declined sharply in 2025 (down ~24% year over year), and cash flow has been choppy over time, which is common for banks but still reduces visibility. Overall cash conversion is decent, but the volatility is the main constraint on the score.

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	1.17B	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	233.37M	288.74M	239.04M	417.32M	396.67M
Operating Cash Flow	233.37M	317.51M	255.03M	430.61M	417.13M
Investing Cash Flow	0.00	548.55M	1.03B	-965.10M	-2.38B
Financing Cash Flow	-234.03M	-1.44B	-66.92M	-197.36M	2.18B

First Hawaiian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 24.76 is below the 20-day moving average (MA) of 26.15, below the 50-day MA of 26.23, and above the 200-day MA of 24.67, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 35.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHB.

First Hawaiian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSFS	76 Outperform	$3.47B	12.48	10.27%	1.16%	-3.62%	10.83%
WSBC	75 Outperform	$3.35B	15.67	6.54%	4.35%	41.49%	-5.53%
CATY	74 Outperform	$3.38B	10.95	10.63%	2.72%	-1.59%	9.34%
FHB	70 Outperform	$3.06B	11.25	9.62%	3.96%	-4.45%	16.92%
FIBK	68 Neutral	$3.50B	11.77	8.95%	5.24%	-5.43%	4.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INDB	66 Neutral	$3.86B	17.58	6.25%	3.05%	11.05%	-10.78%

First Hawaiian Corporate Events

First Hawaiian Highlights Strong Capital and Strategic Positioning

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 with a 13.2% CET1 ratio as of December 31, 2025. The materials emphasize the bank’s profitability leadership in Hawaii, cost-advantaged and diversified deposit franchise, balanced loan portfolio across Hawaii, Guam, Saipan and the mainland, and its focus on disciplined credit risk, selective growth in high-spread markets, and sustained shareholder returns, underscoring the resilience of both its franchise and Hawaii’s broader economy for customers and investors.

The most recent analyst rating on (FHB) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on First Hawaiian stock, see the FHB Stock Forecast page.