First Hawaiian Inc (NASDAQ:FHB) Q3 2025 Earnings Beat Estimates

First Hawaiian Inc (NASDAQ:FHB) delivered a robust financial performance for the third quarter of 2025, surpassing analyst expectations on both the top and bottom lines. The Hawaiian banking institution reported revenue and earnings that exceeded consensus estimates, contributing to a positive market reaction in pre-market trading.

Earnings and Revenue Performance

The company's third-quarter results demonstrated significant strength in its core banking operations. First Hawaiian reported revenue of $226.4 million, representing a 7.8% increase compared to the same period last year and exceeding analyst estimates of $220.5 million. The earnings performance was particularly notable, with GAAP earnings per share of $0.59 coming in 14% above the consensus estimate of $0.53.

Key financial highlights from the quarter include:

• Net income of $73.8 million, compared to $73.2 million in the previous quarter
• Net interest income of $169.3 million, an increase of $5.7 million from the prior quarter
• Net interest margin of 3.19%, an 8 basis point improvement
• Efficiency ratio improvement to 55.3% from 57.2% in the previous quarter

Market Reaction and Price Action

The market responded positively to the earnings beat, with shares rising approximately 2.7% in pre-market trading following the announcement. This positive momentum contrasts with the stock's recent performance, which had seen a decline of about 5.6% over the past month. The immediate market reaction suggests investors were pleasantly surprised by the strength of the quarterly results, particularly the improved net interest margin and efficiency metrics.

Balance Sheet and Operational Highlights

First Hawaiian maintained a strong balance sheet position while demonstrating strategic discipline in its operations. Total deposits increased significantly by $498.1 million to $20.7 billion, while total loans and leases decreased by $222.5 million to $14.1 billion compared to the previous quarter. This deposit growth coupled with careful loan portfolio management reflects the bank's strategic approach to liquidity and risk management.

The company's capital position remained robust, with capital ratios showing improvement across all measures:

• Common Equity Tier 1 ratio of 13.24%, up from 13.03%
• Total capital ratio of 14.49%, up from 14.28%
• Tier 1 leverage ratio of 9.16%, up from 9.12%

Dividend and Capital Return

Demonstrating commitment to shareholder returns, the Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 28, 2025, to stockholders of record as of November 17, 2025. The company also continued its share repurchase program, buying back 964 thousand shares at a total cost of $24.0 million during the quarter.

Outlook and Forward Expectations

While the earnings release did not provide specific forward-looking guidance, the current analyst estimates for the full year 2025 project revenue of approximately $876.2 million. For the fourth quarter of 2025, analysts are estimating revenue of $221.8 million and earnings per share of approximately $0.52. The company's performance trajectory suggests it is well-positioned to meet or exceed these expectations, particularly given the improved net interest margin and strong deposit growth.

Chairman, President, and CEO Bob Harrison commented on the results, stating, "I'm pleased to report that the third quarter was another period of market-leading performance for First Hawaiian Bank. These strong results reflect how well our teams and operations work together to deliver outstanding financial performance and the personalized service our customers expect and deserve."

For more detailed earnings information and future estimates, readers can access comprehensive data through the company's earnings portal.

Disclaimer: This article presents an analysis of First Hawaiian Inc's quarterly earnings results and should not be considered as investment advice. Readers should conduct their own research and consult with financial advisors before making investment decisions.