First Hawaiian (FHB) Q4 2025 earnings summary

Executive summary

• Achieved net income of $69.9 million ($0.56 per diluted share) in Q4 2025, with annual net income of $276.3 million; return on average tangible equity was 15.8% for Q4 and 16.3% for the full year.

• Loans and leases grew by $183.1 million, primarily driven by commercial and industrial lending; retail and commercial deposits increased $233 million, while public deposits declined $447 million, resulting in a net deposit decrease of $213.9 million.

• Asset quality remained robust, with a low net charge-off rate and stable nonperforming assets.

• Board declared a $0.26 per share quarterly dividend and approved a $250 million stock repurchase program.

• Balance sheet remains solid with ample liquidity and strong capital position; CET1 ratio above 13%.

Financial highlights

• Net interest income for Q4 was $170.3 million, up $1 million sequentially; NIM was 3.21%, up 2 bps from prior quarter.

• Noninterest income was $55.6 million; noninterest expense was $125.1 million, with an efficiency ratio of 55.1%.

• Total loans grew $183 million in Q4, or 5.2% annualized; C&I loan growth driven by draws on existing lines and a new auto dealer customer.

• Cost of deposits decreased by 9 bps to 1.29%; non-interest-bearing deposit ratio was 32%.

• Tangible book value per share increased to $14.46.

Outlook and guidance

• Full-year 2026 loan growth expected in the 3%-4% range, primarily from CRE and C&I loans.

• Full-year NIM projected at 3.16%-3.18%, with tailwinds from fixed asset repricing and headwinds from Fed rate cuts and decreasing deposit beta.

• Non-interest income expected to be stable at about $220 million; expenses guided to approximately $520 million for 2026.

• Loan growth expected to be lower in the first half of the year, picking up in the second half as payoffs normalize.