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First Hawaiian
(NASDAQ:FHB)
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Rating:74Outperform
Price Target:
$29.00
â–²(11.71% Upside)
Action:Upgraded
Date:10/23/26
FHB’s score is driven primarily by strong financial stability (zero reported debt, steady ROE) and an attractive valuation (low P/E and ~4.1% dividend yield). The score is tempered by weaker recent operating momentum (revenue and free cash flow down, margin compression), mixed technical signals, and earnings-call risks tied to reduced loan-growth guidance, higher credit charges, and merger-related costs/execution.
Positive Factors
Conservative Balance Sheet
Zero reported debt and a 0.0 debt-to-equity ratio give First Hawaiian substantial balance-sheet flexibility, while equity growth and roughly 10% ROE indicate ongoing capital profitability. This foundation can support resilience through credit or rate cycles.
Negative Factors
Weaker Operating Momentum
Revenue down 15%, compressed operating margins, and a 25% decline in free cash flow show that profitability is not translating into improving operating momentum. Even with solid net margin, weaker top-line and cash trends can constrain reinvestment and earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Zero reported debt and a 0.0 debt-to-equity ratio give First Hawaiian substantial balance-sheet flexibility, while equity growth and roughly 10% ROE indicate ongoing capital profitability. This foundation can support resilience through credit or rate cycles.
Read all positive factors
First Hawaiian (FHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.08B
Dividend Yield4.1%
Average Volume (3M)2.37M
Price to Earnings (P/E)11.3
Beta (1Y)0.78
Revenue Growth1.01%
EPS Growth9.09%
CountryUS
Employees2,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.32
Shares Outstanding121,681,350
10 Day Avg. Volume2,438,042
30 Day Avg. Volume2,365,350
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 Cap1.08
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit4.81
Enterprise Value/Ebitda15.00
Forecast
1Y Price Target
$29.14Price Target Upside12.26% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)2.36
Revenue Forecast (FY)$912.02M
First Hawaiian Business Overview & Revenue Model
Company Description
First Hawaiian, Inc. operates as the holding company for First Hawaiian Bank, providing an extensive array of financial services to both individual consumers and commercial entities throughout the United States. Its activities are organized across...
How the Company Makes Money
FHB primarily makes money through traditional bank revenue streams generated by First Hawaiian Bank. The largest driver is typically net interest income: the bank earns interest and fees on loans and other interest-earning assets (such as commerci...
First Hawaiian Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was predominantly constructive: operating performance improved, deposit costs declined, NIM increased, liquidity and capitalization remained strong, the visitor economy was resilient, and acquisition planning continued to progress. These positives were offset by lower loan balances and reduced loan-growth guidance, elevated credit charges and criticized assets, residential loan runoff, upcoming merger costs and ongoing acquisition execution considerations. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Acquisition Progress and Integration Planning
The company said it is making good progress obtaining regulatory and shareholder approvals for the acquisition, with shareholder special meetings scheduled for October 29 and final regulatory approvals remaining. Integration planning is going well, and the company continues to expect the transaction to close in the fourth quarter of 2026.
Negative Updates
Loan Balances Declined and Full-Year Growth Guidance Was Reduced
Total loans declined by $115 million during the quarter, primarily due to unexpected commercial real estate payoffs, a slight decline in dealer floor plan balances and residential loan runoff. The full-year loan growth outlook was reduced to 1% to 2% from 3% to 4%.
Read all updates
Q3-2026 Updates
Positive
Negative
Acquisition Progress and Integration Planning
The company said it is making good progress obtaining regulatory and shareholder approvals for the acquisition, with shareholder special meetings scheduled for October 29 and final regulatory approvals remaining. Integration planning is going well, and the company continues to expect the transaction to close in the fourth quarter of 2026.
Read all positive updates
Company Guidance
Management reduced its full year loan outlook to 1% to 2% growth, down from 3% to 4% growth, expects fourth-quarter NIM to be between 3.34% to 3.35%, and increased its full year NIM outlook to 3.26% to 3.27%; full year noninterest income remains about $220 million, full year expenses excluding merger-related costs and tax expense in the third quarter related to that settlement are now expected to be in the $510 million to $515 million range, the effective tax rate should remain unchanged, and merger-related costs are expected to be approximately $25 million in the fourth quarter. Management continues to expect to close this quarter, expects some deposit growth in the quarter, expects the fixed-rate cash flow repricing spread to be maybe 160 to 170 going forward on about $400 million or so a quarter, with another couple of basis points or so if rates remain flat, and expects around 100 basis points to CET1 from the new Basel III rules.First Hawaiian Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 976.30M | 1.17B | 1.13B | 1.09B | 811.75M | 708.98M |
| Gross Profit | 690.08M | 853.59M | 759.96M | 778.68M | 760.69M | 729.23M |
| EBITDA | 221.34M | 387.81M | 330.61M | 351.94M | 407.96M | 400.84M |
| Net Income | 284.93M | 276.27M | 230.13M | 234.98M | 265.69M | 265.74M |
Balance Sheet | ||||||
| Total Assets | 23.65B | 23.96B | 23.83B | 24.93B | 24.58B | 24.99B |
| Cash, Cash Equivalents and Short-Term Investments | 263.76M | 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 | 20.82B | 21.19B | 21.21B | 22.44B | 22.31B | 22.34B |
| Stockholders Equity | 2.83B | 2.77B | 2.62B | 2.49B | 2.27B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | 322.41M | 303.29M | 288.74M | 239.04M | 417.32M | 396.67M |
| Operating Cash Flow | 334.88M | 335.07M | 317.51M | 255.03M | 430.61M | 417.13M |
| Investing Cash Flow | -177.77M | 264.11M | 548.55M | 1.03B | -965.10M | -2.38B |
| Financing Cash Flow | -543.65M | -291.62M | -1.44B | -66.92M | -197.36M | 2.18B |
First Hawaiian Technical Analysis
Negative
25.96
Price Trends
25.54
Negative
26.88
Negative
26.25
Negative
Market Momentum
-0.04
Negative
51.29
Neutral
81.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHB, the sentiment is Negative. The current price of 25.96 is above the 20-day moving average (MA) of 24.97, above the 50-day MA of 25.54, and below the 200-day MA of 26.25, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHB.
First Hawaiian Risk Analysis
First Hawaiian disclosed 57 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.79B | 13.05 | 12.78% | 3.97% | 1.90% | 41.02% | |
76 Outperform | $970.42M | 12.00 | 14.00% | 3.08% | 5.05% | 39.76% | |
75 Outperform | $4.19B | 11.43 | 18.91% | 2.84% | 3.06% | 15.68% | |
74 Outperform | $3.08B | 11.26 | 9.83% | 4.10% | 1.01% | 9.09% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $2.18B | 8.90 | 8.50% | 3.66% | 0.49% | 21.69% | |
51 Neutral | $2.84B | -43.71 | -0.62% | 2.57% | -12.90% | -161.70% |
* Financial Sector Average
FHB
First Hawaiian
25.34
1.31
5.47%
BOH
Bank Of Hawaii
70.60
8.90
14.43%
CPF
Central Pacific Financial
37.69
9.20
32.31%
FBP
First Bancorp Puerto Rico
27.42
8.26
43.13%
BANC
Banc of California
17.92
1.14
6.79%
WAFD
Washington Federal
29.47
0.78
2.72%
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.