First Hawaiian Inc (NASDAQ:FHB) reported its fourth-quarter financial results for 2025, delivering earnings that narrowly surpassed analyst expectations while revenue came in slightly below forecasts. The market's initial reaction appeared muted but positive, with the stock trading higher in pre-market activity.
Earnings and Revenue Versus Estimates
The Hawaii-based bank reported diluted earnings per share (EPS) of $0.56 for the quarter ended December 31, 2025. This figure edged out the consensus analyst estimate of $0.5566. However, the company's total revenue, which combines net interest income and noninterest income, was $225.85 million, falling short of the estimated $227.74 million.
The performance highlights a mixed quarter where bottom-line profitability met the mark, but top-line growth was slightly softer than anticipated. The year-over-year comparison is more favorable, with net income of $69.9 million representing a significant increase from the $52.5 million reported in the fourth quarter of 2024.
Market Reaction and Capital Return
Following the earnings release, FHB shares were up approximately 1.5% in pre-market trading. This positive drift suggests investors are focusing on the earnings beat and the company's solid fundamentals, including loan growth and a stable net interest margin, rather than the minor revenue miss. The stock's performance over recent weeks has been modestly positive, with gains of about 7.8% over the past month.
In conjunction with the earnings, the company's Board of Directors announced two key capital return initiatives:
- A quarterly cash dividend of $0.26 per share, payable in late February.
- A new stock repurchase program authorizing the buyback of up to $250 million of its common stock.
Key Takeaways from the Fourth Quarter
Chairman, President, and CEO Bob Harrison stated the bank finished 2025 with "another strong quarter," citing loan growth and its position as "the most profitable bank in the state." The detailed financial results reveal several important trends:
- Loan Growth: Total loans and leases increased by $183.1 million from the prior quarter to $14.3 billion.
- Net Interest Margin Stability: The net interest margin improved slightly by 2 basis points to 3.21%.
- Credit Quality: The company recorded a $7.7 million provision for credit losses, up from $4.5 million in Q3. Non-performing assets increased to 0.29% of total loans, up from 0.22% in September, indicating a cautious but manageable build in reserves.
- Capital Strength: The company maintains robust capital ratios, with a Common Equity Tier 1 ratio of 13.17%.
Looking Ahead
The press release did not provide formal financial guidance for the coming year. Analyst estimates currently project revenue of approximately $224.1 million and EPS of $0.539 for the first quarter of 2026. For the full 2026 year, sales are estimated at $916.1 million with revenue projected around $2.28 billion. Investors will likely listen for any commentary on the 2026 outlook during the company's earnings conference call for further directional signals.
For a detailed breakdown of historical earnings and future analyst estimates for First Hawaiian Inc, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
