First Hawaiian, Inc. Reports Second Quarter 2025 Financial Results and Declares Dividend
HONOLULU, July 25, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today reported financial results for its quarter ended June 30, 2025.
"I'm happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter," said Bob Harrison, Chairman, President, and CEO. "Our results were driven by strong revenues, well controlled expenses and continued excellent credit quality."
On July 23, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 29, 2025, to stockholders of record at the close of business on August 18, 2025.
Second Quarter 2025 Highlights:
Net income of $73.2 million, or $0.58 per diluted share
Total loans and leases increased $58.8 million versus prior quarter
Total deposits increased $15.6 million versus prior quarter
Net interest margin increased 3 basis points to 3.11%
Recorded a $4.5 million provision for credit losses
Provision for income taxes included a net benefit of $5.1 million due a recent change in the California tax code
Board of Directors declared a quarterly dividend of $0.26 per share
Balance Sheet
Total assets were $23.8 billion at June 30, 2025 versus $23.7 billion at March 31, 2025.
Gross loans and leases were $14.4 billion as of June 30, 2025, an increase of $58.8 million, or 0.4%, from $14.3 billion as of March 31, 2025.
Total deposits were $20.2 billion as of June 30, 2025, an increase of $15.6 million from March 31, 2025.
Net Interest Income
Net interest income for the second quarter of 2025 was $163.6 million, an increase of $3.1 million, or 1.9%, compared to $160.5 million for the prior quarter.
The net interest margin was 3.11% in the second quarter of 2025, an increase of 3 basis points compared to 3.08% in the prior quarter.
Provision Expense
During the quarter ended June 30, 2025, we recorded a $4.5 million provision for credit losses. In the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses.
Noninterest Income
Noninterest income was $54.0 million in the second quarter of 2025, an increase of $3.5 million compared to noninterest income of $50.5 million in the prior quarter.
Noninterest Expense
Noninterest expense was $124.9 million in the second quarter of 2025, an increase of $1.4 million compared to noninterest expense of $123.6 million in the prior quarter.
The efficiency ratio was 57.2% and 58.2% for the quarters ended June 30, 2025 and March 31, 2025, respectively.
Taxes
The effective tax rate was 16.9% and 23.0% for the quarters ended June 30, 2025 and March 31, 2025, respectively. The decrease in the effective tax rate was primarily due to the remeasurement of the California deferred tax assets as of the beginning of the year, reflecting the enactment of a recent change in the California tax code.
Asset Quality
The allowance for credit losses was $167.8 million, or 1.17% of total loans and leases, as of June 30, 2025, compared to $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025. The reserve for unfunded commitments was $33.3 million as of June 30, 2025 and March 31, 2025. Net charge-offs were $3.3 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended June 30, 2025, compared to net charge-offs of $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2025. Total non-performing assets were $28.6 million, or 0.20% of total loans and leases and other real estate owned, on June 30, 2025, compared to total non-performing assets of $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025.
Capital
Total stockholders' equity was $2.7 billion on June 30, 2025 versus $2.6 billion on March 31, 2025.
The tier 1 leverage, common equity tier 1 and total capital ratios were 9.12%, 13.03% and 14.28%, respectively, on June 30, 2025, compared with 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025.
The Company repurchased 1.04 million shares of common stock at a total cost of $25.0 million under the stock repurchase program in the second quarter. The average cost was $23.99 per share repurchased.
First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii's oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company's website, www.fhb.com.
Conference Call Information
First Hawaiian will host a conference call to discuss the Company's results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.
To access the call by phone, please register via the following link:https://register-conf.media-server.com/register/BI3617237efe0943198ba8998c36c623cc, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized" and "outlook", or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ("SEC") filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.
Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.
Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.
Investor Relations Contact: Kevin Haseyama, CFA(808)
Media Contact:Lindsay Chambers(808)
Financial Highlights
Table 1
For the Three Months Ended
For the Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands, except per share data)
2025
2025
2024
2025
2024
Operating Results:
Net interest income
$
163,583
$
160,526
$
152,851
$
324,109
$
307,278
Provision for credit losses
4,500
10,500
1,800
15,000
8,100
Noninterest income
53,958
50,477
51,768
104,435
103,139
Noninterest expense
124,939
123,560
122,086
248,499
250,899
Net income
73,247
59,248
61,921
132,495
116,141
Basic earnings per share
0.58
0.47
0.48
1.05
0.91
Diluted earnings per share
0.58
0.47
0.48
1.05
0.91
Dividends declared per share
0.26
0.26
0.26
0.52
0.52
Dividend payout ratio
44.83
%
55.32
%
54.17
%
49.52
%
57.14
%
Performance Ratios(1):
Net interest margin
3.11
%
3.08
%
2.92
%
3.10
%
2.91
%
Efficiency ratio
57.23
%
58.22
%
59.22
%
57.71
%
60.69
%
Return on average total assets
1.23
%
1.01
%
1.04
%
1.12
%
0.97
%
Return on average tangible assets (non-GAAP)(2)
1.28
%
1.05
%
1.08
%
1.17
%
1.01
%
Return on average total stockholders' equity
11.03
%
9.09
%
9.91
%
10.07
%
9.32
%
Return on average tangible stockholders' equity (non-GAAP)(2)
17.61
%
14.59
%
16.42
%
16.12
%
15.48
%
Average Balances:
Average loans and leases
$
14,288,918
$
14,309,998
$
14,358,049
$
14,299,400
$
14,335,306
Average earning assets
21,167,588
21,169,194
21,247,707
21,168,386
21,364,799
Average assets
23,859,410
23,890,459
23,958,913
23,874,849
24,073,060
Average deposits
20,280,042
20,354,040
20,308,028
20,316,836
20,439,979
Average stockholders' equity
2,663,850
2,641,978
2,512,471
2,652,975
2,504,656
Market Value Per Share:
Closing
24.96
24.44
20.76
24.96
20.76
High
25.09
28.28
22.68
28.28
23.12
Low
20.32
23.95
19.48
20.32
19.48
As of
As of
As of
As of
June 30,
March 31,
December 31,
June 30,
(dollars in thousands, except per share data)
2025
2025
2024
2024
Balance Sheet Data:
Loans and leases
$
14,351,869
$
14,293,036
$
14,408,258
$
14,359,899
Total assets
23,837,147
23,744,958
23,828,186
23,991,791
Total deposits
20,231,419
20,215,816
20,322,216
20,318,832
Short-term borrowings
250,000
250,000
250,000
500,000
Total stockholders' equity
2,694,545
2,648,852
2,617,486
2,550,312
Per Share of Common Stock:
Book value
$
21.61
$
21.07
$
20.70
$
19.94
Tangible book value (non-GAAP)(2)
13.63
13.15
12.83
12.16
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases
0.20
%
0.14
%
0.14
%
0.13
%
Allowance for credit losses for loans and leases / total loans and leases
1.17
%
1.17
%
1.11
%
1.12
%
Capital Ratios:
Common Equity Tier 1 Capital Ratio
13.03
%
12.93
%
12.80
%
12.73
%
Tier 1 Capital Ratio
13.03
%
12.93
%
12.80
%
12.73
%
Total Capital Ratio
14.28
%
14.17
%
13.99
%
13.92
%
Tier 1 Leverage Ratio
9.12
%
9.01
%
9.14
%
9.03
%
Total stockholders' equity to total assets
11.30
%
11.16
%
10.98
%
10.63
%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)
7.44
%
7.27
%
7.10
%
6.76
%
Non-Financial Data:
Number of branches
48
48
48
48
Number of ATMs
274
273
273
272
Number of Full-Time Equivalent Employees
2,006
1,995
1,997
2,032
(1)
Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.
(2)
Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders' equity as the ratio of net income to average tangible stockholders' equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders' equity. We compute our tangible book value per share as the ratio of tangible stockholders' equity to outstanding shares. Tangible stockholders' equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders' equity. We compute our tangible stockholders' equity to tangible assets as the ratio of tangible stockholders' equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
Consolidated Statements of Income
Table 2
For the Three Months Ended
For the Six Months Ended
June 30,
March 31,
June 30,
June 30,
(dollars in thousands, except per share amounts)
2025
2025
2024
2025
2024
Interest income
Loans and lease financing
$
193,393
$
192,102
$
202,068
$
385,495
$
401,912
Available-for-sale investment securities
12,469
13,150
14,143
25,619
28,689
Held-to-maturity investment securities
16,299
16,647
17,575
32,946
35,368
Other
14,578
13,251
11,148
27,829
23,917
Total interest income
236,739
235,150
244,934
471,889
489,886
Interest expense
Deposits
70,289
71,709
85,609
141,998
169,752
Short-term borrowings
2,627
2,599
5,953
5,226
11,906
Other
240
316
521
556
950
Total interest expense
73,156
74,624
92,083
147,780
182,608
Net interest income
163,583
160,526
152,851
324,109
307,278
Provision for credit losses
4,500
10,500
1,800
15,000
8,100
Net interest income after provision for credit losses
159,083
150,026
151,051
309,109
299,178
Noninterest income
Service charges on deposit accounts
7,830
7,535
7,793
15,365
15,339
Credit and debit card fees
15,913
14,474
15,861
30,387
32,034
Other service charges and fees
13,350
12,167
11,036
25,517
20,940
Trust and investment services income
9,154
9,370
9,426
18,524
19,780
Bank-owned life insurance
4,724
4,371
3,360
9,095
7,646
Investment securities gains, net
,
37
—
37
—
Other
2,987
2,523
4,292
5,510
7,400
Total noninterest income
53,958
50,477
51,768
104,435
103,139
Noninterest expense
Salaries and employee benefits
59,501
60,104
57,737
119,605
116,999
Contracted services and professional fees
15,997
14,839
16,067
30,836
31,806
Occupancy
7,934
8,100
7,377
16,034
14,318
Equipment
14,037
13,871
13,196
27,908
26,609
Regulatory assessment and fees
3,759
3,823
3,814
7,582
11,934
Advertising and marketing
2,035
2,179
1,765
4,214
4,377
Card rewards program
8,406
7,919
8,719
16,325
17,227
Other
13,270
12,725
13,411
25,995
27,629
Total noninterest expense
124,939
123,560
122,086
248,499
250,899
Income before provision for income taxes
88,102
76,943
80,733
165,045
151,418
Provision for income taxes
14,855
17,695
18,812
32,550
35,277
Net income
$
73,247
$
59,248
$
61,921
$
132,495
$
116,141
Basic earnings per share
$
0.58
$
0.47
$
0.48
$
1.05
$
0.91
Diluted earnings per share
$
0.58
$
0.47
$
0.48
$
1.05
$
0.91
Basic weighted-average outstanding shares
125,321,837
126,281,802
127,867,853
125,799,060
127,787,663
Diluted weighted-average outstanding shares
125,833,064
127,166,932
128,262,594
126,493,569
128,279,917
Consolidated Balance Sheets
Table 3
June 30,
March 31,
December 31,
June 30,
(dollars in thousands, except share amount)
2025
2025
2024
2024
Assets
Cash and due from banks
$
304,624
$
240,738
$
258,057
$
290,501
Interest-bearing deposits in other banks
1,094,411
1,073,841
912,133
824,258
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,097,906 as of June 30, 2025, $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,379,004 as of June 30, 2024)
1,891,654
1,858,428
1,926,516
2,067,956
Held-to-maturity, at amortized cost (fair value: $3,230,698 as of June 30, 2025, $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,401,006 as of June 30, 2024)
3,658,814
3,724,908
3,790,650
3,917,175
Loans held for sale
,
1,547
—
2,820
Loans and leases
14,351,869
14,293,036
14,408,258
14,359,899
Less: allowance for credit losses
167,825
166,612
160,393
160,517
Net loans and leases
14,184,044
14,126,424
14,247,865
14,199,382
Premises and equipment, net
299,149
292,576
288,530
283,762
Accrued interest receivable
77,943
78,973
79,979
82,512
Bank-owned life insurance
502,419
495,567
491,890
486,261
Goodwill
995,492
995,492
995,492
995,492
Mortgage servicing rights
4,828
4,926
5,078
5,395
Other assets
823,769
851,538
831,996
836,277
Total assets
$
23,837,147
$
23,744,958
$
23,828,186
$
23,991,791
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing
$
13,386,987
$
13,330,265
$
13,347,068
$
13,461,365
Noninterest-bearing
6,844,432
6,885,551
6,975,148
6,857,467
Total deposits
20,231,419
20,215,816
20,322,216
20,318,832
Short-term borrowings
250,000
250,000
250,000
500,000
Retirement benefits payable
95,357
96,241
97,135
101,304
Other liabilities
565,826
534,049
541,349
521,343
Total liabilities
21,142,602
21,096,106
21,210,700
21,441,479
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024)
1,422
1,421
1,417
1,417
Additional paid-in capital
2,567,936
2,564,408
2,560,380
2,554,795
Retained earnings
1,000,997
960,337
934,048
887,176
Accumulated other comprehensive loss, net
(407,008
)
(433,769
)
(463,994
)
(519,132
)
Treasury stock (17,489,483 shares as of June 30, 2025, 16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of June 30, 2024)
(468,802
)
(443,545
)
(414,365
)
(373,944
)
Total stockholders' equity
2,694,545
2,648,852
2,617,486
2,550,312
Total liabilities and stockholders' equity
$
23,837,147
$
23,744,958
$
23,828,186
$
23,991,791
Average Balances and Interest Rates
Table 4
Three Months Ended
Three Months Ended
Three Months Ended
June 30, 2025
March 31, 2025
June 30, 2024
Average
Income/
Yield/
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in millions)
Balance
Expense
Rate
Balance
Expense
Rate
Balance
Expense
Rate
Earning Assets
Interest-Bearing Deposits in Other Banks
$
1,276.8
$
14.1
4.45
%
$
1,171.1
$
12.8
4.44
%
$
773.4
$
10.5
5.45
%
Available-for-Sale Investment Securities
Taxable
1,869.3
12.5
2.67
1,891.4
13.2
2.79
2,100.7
14.1
2.69
Non-Taxable
1.3
—
5.27
1.4
—
5.52
1.5
—
5.76
Held-to-Maturity Investment Securities
Taxable
3,099.9
13.2
1.70
3,164.0
13.6
1.72
3,358.2
14.4
1.71
Non-Taxable
596.5
3.3
2.21
599.0
3.7
2.51
602.9
4.0
2.64
Total Investment Securities
5,567.0
29.0
2.08
5,655.8
30.5
2.16
6,063.3
32.5
2.15
Loans Held for Sale
0.3
—
6.86
0.3
—
6.28
1.0
—
6.58
Loans and Leases(1)
Commercial and industrial
2,291.5
35.2
6.16
2,196.8
33.6
6.20
2,201.6
38.1
6.96
Commercial real estate
4,392.5
66.9
6.11
4,420.1
66.5
6.10
4,305.6
71.5
6.68
Construction
900.4
14.9
6.66
937.0
15.4
6.67
984.8
18.5
7.57
Residential:
Residential mortgage
4,104.1
40.2
3.92
4,150.3
40.9
3.94
4,229.4
40.1
3.80
Home equity line
1,154.4
13.4
4.64
1,149.8
13.1
4.61
1,164.2
12.6
4.35
Consumer
1,013.9
19.2
7.58
1,019.5
18.9
7.53
1,054.1
17.7
6.74
Lease financing
432.1
4.2
3.90
436.5
4.3
3.99
418.3
4.3
4.09
Total Loans and Leases
14,288.9
194.0
5.44
14,310.0
192.7
5.44
14,358.0
202.8
5.67
Other Earning Assets
34.6
0.4
4.94
32.0
0.4
5.48
52.0
0.7
5.25
Total Earning Assets(2)
21,167.6
237.5
4.50
21,169.2
236.4
4.51
21,247.7
246.5
4.66
Cash and Due from Banks
222.3
235.9
240.4
Other Assets
2,469.5
2,485.4
2,470.8
Total Assets
$
23,859.4
$
23,890.5
$
23,958.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings
$
6,247.5
$
21.0
1.35
%
$
6,232.5
$
21.3
1.38
%
$
6,000.4
$
23.4
1.57
%
Money Market
3,822.1
22.8
2.39
3,922.2
23.0
2.38
4,076.7
30.6
3.02
Time
3,389.4
26.5
3.14
3,317.1
27.4
3.36
