First Hawaiian Q2 net income rises 23.6% to $73.2mln.

• First Hawaiian reports Q2 2025 net income of $73.2 million, a 23.6% increase from Q1. • Strong revenues and controlled expenses drove results. • Excellent credit quality maintained. • Board declares $0.26 quarterly dividend. • Payable on August 29, 2025.

First Hawaiian Bank (NASDAQ:FHB) reported robust financial results for the second quarter of 2025, with net income of $73.2 million, marking a significant 23.6% increase from the previous quarter. The bank's strong performance was driven by robust revenues, controlled expenses, and excellent credit quality. Key metrics include a net interest margin of 3.11%, total loans increasing by $58.8 million to $14.4 billion, and deposits growing by $15.6 million to $20.2 billion. The efficiency ratio improved to 57.2% from 58.2% in Q1, reflecting better operational leverage. The bank's credit quality remained excellent, with net charge-offs at 0.09% of average loans (annualized), down from 0.11% in Q1. The provision for credit losses decreased significantly to $4.5 million from $10.5 million in the previous quarter. The board declared a quarterly dividend of $0.26 per share, payable on August 29, 2025. Additionally, the company repurchased 1.04 million shares at an average cost of $23.99 per share, totaling $25.0 million under its stock repurchase program [2].

First Hawaiian Bank's results were well-rounded, with net interest income increasing to $163.6 million, up 1.9% quarter-over-quarter, and noninterest income showing healthy growth at $54.0 million, a 6.9% increase from Q1. On the expense side, management demonstrated strong cost discipline, with noninterest expenses increasing by just 1.1% to $124.9 million. The bank's balance sheet growth was modest but positive, with total assets increasing by $1.0 billion to $23.8 billion. The bank maintains strong capital levels with a Common Equity Tier 1 ratio of 13.03%, up from 12.93% in Q1. A notable item was the $5.1 million tax benefit resulting from changes to California's tax code, which reduced the effective tax rate to 16.9% from 23.0% in Q1.

First Hawaiian Bank 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. 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.

References:
[1] https://finance.yahoo.com/news/first-hawaiian-bank-fhb-q2-030303197.html
[2] https://www.stocktitan.net/news/FHB/first-hawaiian-inc-reports-second-quarter-2025-financial-results-and-clp3d8ca86nw.html