First Hawaiian Inc (FHB)
NASDAQ:FHB
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First Hawaiian
(NASDAQ:FHB)
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Rating:80Outperform
Price Target:
$31.00
â–²(15.59% Upside)
Action:ReiteratedDate:05/09/26
FHB scores well primarily on strong recent financial performance and cash generation with conservative leverage, supported by an attractive valuation (low P/E and solid dividend). Technicals also point to a healthy uptrend. The main constraints on the score come from banking-cycle sensitivity: normalized margins vs prior peaks, some near-term NIM/NII pressures, expected expense growth, and competitive/macro uncertainty noted on the earnings call.
Positive Factors
Cash generation
Consistent TTM operating cash flow (~$458M) and free cash flow (~$430M) provide durable internal funding for lending, capital needs, buybacks and dividends. High FCF relative to net income (~0.94x) signals earnings quality and long‑term flexibility through cycles.
Negative Factors
Margin pressure from rate moves and CD rolloffs
Structural margin risk exists as prior rate cuts and large near‑term CD maturities (~$1B) compress deposit costs slowly while asset yields reprice unevenly. This dynamic can depress NII and NIM for multiple quarters unless reinvestment yields or loan spreads sustainably widen.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent TTM operating cash flow (~$458M) and free cash flow (~$430M) provide durable internal funding for lending, capital needs, buybacks and dividends. High FCF relative to net income (~0.94x) signals earnings quality and long‑term flexibility through cycles.
Read all positive factors
First Hawaiian (FHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.33B
Dividend Yield3.96%
Average Volume (3M)1.43M
Price to Earnings (P/E)11.1
Beta (1Y)0.83
Revenue Growth0.76%
EPS Growth24.52%
CountryUS
Employees1,995
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.29
Shares Outstanding121,648,970
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/Revenue2.70
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda8.12
Forecast
1Y Price Target
$28.00Price Target Upside4.40% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)2.31
Revenue Forecast (FY)$914.92M
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
FHB primarily makes money through traditional banking activities conducted by its bank subsidiary. A core revenue stream is net interest income: the bank earns interest and fees on loans (such as residential mortgages, commercial real estate loans...
First Hawaiian Earnings Call Summary
Earnings Call Date:Apr 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial starting position: loan and deposit growth, strong credit metrics, healthy capital and active buybacks, and a constructive NIM outlook driven by predictable balance-sheet repricing. Offsetting factors include modest sequential pressure on NII and NIM from the prior rate cut, a decline in noninterest income (timing-related), expected expense growth through the year, near-term CD rolloffs, and external uncertainties from recent natural disasters and competitive pressures. Overall, management maintained constructive guidance and emphasized conservative credit and capital positioning.Positive Updates
Reserve Position
Allowance for credit losses increased just under $1 million to $169 million, representing a coverage ratio of 1.17% of total loans and leases; company states it is conservatively reserved.
Negative Updates
Net Interest Income and Margin Pressure from Rate Cut
Net interest income was $167.5 million, down $2.8 million from the prior quarter. Net interest margin was 3.19%, a sequential decline of 2 basis points reflecting the full-quarter impact of the December rate cut.
Read all updates
Q1-2026 Updates
Positive
Negative
Reserve Position
Allowance for credit losses increased just under $1 million to $169 million, representing a coverage ratio of 1.17% of total loans and leases; company states it is conservatively reserved.
Read all positive updates
Company Guidance
The company guided to full‑year loan growth of 3–4%, a full‑year NIM of 3.22%–3.23% (Q1 NIM was 3.19% with Q2 expected to be up 2–3 bps sequentially), full‑year noninterest income of about $220 million and full‑year expenses of about $520 million; its outlook assumes continued balance‑sheet repricing with roughly $400 million of fixed‑rate cash flows repricing each quarter (about a 155‑bp spread between roll‑off and roll‑on), roughly $600 million of securities roll‑off and $1.0 billion of loan cash flows for the year, roll‑off yields near 4% and blended new asset yields around 5.5%. Key deposit and funding metrics baked into the view include Q1 deposit growth of $262 million (public deposits +$244 million), a noninterest‑bearing ratio of 31%, total cost of deposits down 7 bps to 1.22% (March at ~1.20%), and Q2 CD maturities of about $1.0 billion (rolling from ~2.90% toward ~2.50%). Q1 context cited alongside the guidance: NII $167.5M, noninterest income $52.8M, noninterest expense $127.9M, ROATA 1.2%, ROATE 15.3%, effective tax rate 22.5%; credit assumptions include criticized assets down 21 bps, NPAs/90+ days at 30 bps, QTD net charge‑offs $4.9M (14 bps), a $5M provision and an ACL of $169M (coverage 1.17% of loans). Share repurchase capacity remains a $250M authorization with roughly $32M repurchased in Q1.First Hawaiian Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.15B | 1.17B | 1.13B | 1.09B | 811.75M | 708.98M |
| Gross Profit | 851.33M | 853.59M | 759.96M | 778.68M | 760.69M | 729.23M |
| EBITDA | 381.98M | 354.24M | 330.61M | 351.94M | 407.96M | 400.84M |
| Net Income | 284.80M | 276.27M | 230.13M | 234.98M | 265.69M | 265.74M |
Balance Sheet | ||||||
| Total Assets | 24.26B | 23.96B | 23.83B | 24.93B | 24.58B | 24.99B |
| Cash, Cash Equivalents and Short-Term Investments | 225.73M | 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 | 21.50B | 21.19B | 21.21B | 22.44B | 22.31B | 22.34B |
| Stockholders Equity | 2.77B | 2.77B | 2.62B | 2.49B | 2.27B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | 430.09M | 303.29M | 288.74M | 239.04M | 417.32M | 396.67M |
| Operating Cash Flow | 458.07M | 335.07M | 317.51M | 255.03M | 430.61M | 417.13M |
| Investing Cash Flow | -122.16M | 264.11M | 548.55M | 1.03B | -965.10M | -2.38B |
| Financing Cash Flow | 68.66M | -291.62M | -1.44B | -66.92M | -197.36M | 2.18B |
First Hawaiian Technical Analysis
Positive
26.82
Price Trends
25.31
Positive
25.61
Positive
24.96
Positive
Market Momentum
0.49
Negative
66.59
Neutral
73.44
Neutral
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 26.82 is above the 20-day moving average (MA) of 25.38, above the 50-day MA of 25.31, and above the 200-day MA of 24.96, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 66.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.33B | 11.13 | 10.39% | 3.96% | 0.76% | 24.52% | |
80 Outperform | $3.73B | 10.00 | 11.34% | 1.16% | -2.18% | 26.43% | |
78 Outperform | $3.85B | 9.62 | 11.37% | 2.72% | 0.18% | 22.52% | |
73 Outperform | $3.29B | 9.35 | 8.00% | 4.35% | 49.44% | 102.42% | |
72 Outperform | $3.54B | 13.72 | 9.13% | 5.24% | -5.29% | 45.44% | |
72 Outperform | $3.77B | 11.52 | 7.01% | 3.05% | 27.40% | 13.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FHB
First Hawaiian
27.34
3.72
15.73%
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WSBC
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WSFS
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17.41
32.07%
First Hawaiian Corporate Events
Executive/Board ChangesShareholder Meetings
First Hawaiian Shareholders Back Board, Executive Pay and Auditor
Positive
Apr 24, 2026
At First Hawaiian’s April 22, 2026 annual meeting, stockholders elected eight directors, with all nominees, including Chair and CEO Robert S. Harrison and several other incumbent and newer board members, receiving strong majority support des...
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.