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First Hawaiian Inc (FHB)
NASDAQ:FHB

First Hawaiian (FHB) AI Stock Analysis

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First Hawaiian

(NASDAQ:FHB)

Rating:79Outperform
Price Target:
$28.00
â–²(6.79%Upside)
First Hawaiian's solid financial performance, attractive valuation, and stable credit quality are significant strengths. Technical indicators suggest moderate momentum, while earnings call insights highlight stable management amidst economic uncertainties.
Positive Factors
Loan Growth
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)

First Hawaiian Business Overview & Revenue Model

Company DescriptionFirst Hawaiian, Inc. (FHB) is a financial services company headquartered in Honolulu, Hawaii. It operates primarily through its subsidiary, First Hawaiian Bank, which is Hawaii's largest financial institution. The bank offers a wide range of banking services, including personal and business banking, wealth management, and mortgage services. With a strong presence in Hawaii, Guam, and Saipan, First Hawaiian Bank serves a diverse client base, providing products and services tailored to meet the needs of individuals, businesses, and communities in the region.
How the Company Makes MoneyFirst Hawaiian, Inc. primarily generates revenue through interest income from its lending activities, including personal loans, mortgages, and business loans. Additionally, the company earns non-interest income from fees and service charges associated with its various banking services, such as account maintenance fees, transaction fees, and investment advisory fees. The wealth management division also contributes to the revenue through management fees for investment services. Furthermore, FHB benefits from its strategic partnerships with other financial institutions and service providers, enhancing its product offerings and expanding its market reach in the regions it serves.

First Hawaiian Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 13.80%|
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 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
65
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
72
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
60
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.12B1.13B1.09B811.75M708.98M758.02M
Gross Profit761.55M759.96M778.68M760.69M729.23M589.28M
EBITDA335.74M330.61M351.94M407.96M400.84M306.80M
Net Income235.16M230.13M234.98M265.69M265.74M185.75M
Balance Sheet
Total Assets23.74B23.83B24.93B24.58B24.99B22.66B
Cash, Cash Equivalents and Short-Term Investments1.31B1.18B4.00B3.68B9.69B1.04B
Total Debt250.00M250.00M500.00M75.00M0.00200.01M
Total Liabilities21.10B21.21B22.52B22.31B22.41B19.92B
Stockholders Equity2.65B2.62B2.49B2.27B2.66B2.74B
Cash Flow
Free Cash Flow255.58M288.74M239.04M417.32M396.67M176.12M
Operating Cash Flow287.59M317.51M255.03M430.61M417.13M209.51M
Investing Cash Flow657.79M548.55M1.03B-965.10M-2.38B-2.10B
Financing Cash Flow-905.06M-1.44B-66.92M-197.36M2.18B2.24B

First Hawaiian Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.22
Price Trends
50DMA
23.76
Positive
100DMA
24.16
Positive
200DMA
24.56
Positive
Market Momentum
MACD
0.47
Negative
RSI
73.52
Negative
STOCH
93.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Positive. The current price of 26.22 is above the 20-day moving average (MA) of 24.18, above the 50-day MA of 23.76, and above the 200-day MA of 24.56, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 93.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FBFBP
79
Outperform
$3.50B11.7718.55%3.32%4.91%4.75%
FHFHB
79
Outperform
$3.30B14.279.11%3.97%-0.36%5.97%
BOBOH
73
Outperform
$2.82B19.9110.03%3.95%2.95%-7.85%
71
Outperform
$3.21B14.516.63%6.14%-0.05%-15.66%
70
Neutral
$3.35B12.0510.07%2.85%2.76%-12.43%
67
Neutral
$16.84B11.729.71%3.76%11.61%-9.60%
64
Neutral
$3.72B46.174.22%8.53%8.99%3.89%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FHB
First Hawaiian
26.41
6.68
33.86%
BOH
Bank Of Hawaii
71.13
17.01
31.43%
CATY
Cathay General Bancorp
47.97
12.75
36.20%
FBP
First Bancorp Puerto Rico
21.93
4.62
26.69%
FIBK
First Interstate Bancsystem
31.12
5.69
22.38%
TFSL
TFS Financial
13.25
1.91
16.84%

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
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.Date of analysis: Jun 24, 2025