What guidance did First Hawaiian's management provide for the next earnings period?

What is First Hawaiian's gross profit margin?

What is the revenue and EPS growth rate for First Hawaiian year over year?

What were the key takeaways from First Hawaiian's earnings call?

What factors drove the changes in First Hawaiian's revenue and profit?

What does First Hawaiian do and what are its main business segments?

Did First Hawaiian beat or miss consensus estimates last quarter?

What were the key takeaways from First Hawaiian’s earnings call?

- **Loan Growth Momentum**: Q4 originations expected to offset Q3 paydowns, with $1B fixed-rate cash flows repricing at 125bp spread.
- **NIM Expansion**: 8bp Q3 expansion to 3.19%, guided to 3.16-3.20% in Q4. Deposit beta 90% on first rate cut, declining thereafter.
- **Deposit Strength**: Public operating accounts +$406M, noninterest-bearing deposits 33% of total. Core deposit beta to Fed cuts remains high.
- **M&A Cautious**: No active discussions, but open to mainland opportunities in Western states. Hawaii market share over 25% limits organic growth.
- **Credit Resilience**: ACL coverage at 117bp, net charge-offs 12bp, NPAs 26bp. No impact from government shutdown observed.


**【Management Opening Remarks】**
- CEO Bob Harrison highlighted Hawaii's resilient local economy with visitor arrivals up 0.7% YoY and year-to-date spending growth of 4.5%. The bank offered relief measures for federal employees impacted by the government shutdown.
- CFO Jamie Moses noted Q3 net income increased due to higher net interest and noninterest income, with a normalized effective tax rate of 23.2% after prior quarter benefits.

**【CEO Summary Section】**
- Total loans declined $223M (C&I down $146M, paydowns of $130M), but Q4 originations are strong with expectations to end 2025 flat to 2024 levels.
- Share repurchases totaled $24M in Q3, with $26M remaining under the $100M buyback plan.
- Emphasized Hawaii's stable credit metrics (net charge-offs 12bp, NPAs 26bp) and conservative ACL coverage at 117bp.

**【CFO Financial Commentary】**
- Deposits increased $500M (public operating accounts +$406M), with noninterest-bearing deposits at 33% of total.
- Net interest margin (NIM) expanded 8bp to 3.19%, driven by higher asset yields and loan fees. Q4 NIM guidance: 3.16% to 3.20%.
- Noninterest income of $57.1M exceeded expectations, with BOLI income and swaps contributing. Normalized run rate: $54M/Q4.
- Operating expenses expected below prior outlook of $506M, reflecting strong cost control.

**【Q&A Highlights】**
- **Loan Growth**: Q4 pipeline strong, with $1B fixed-rate cash flows repricing at 125bp spread. Investment portfolio runoff ($500-600M) reinvested at 225-250bp spread.
- **Deposit Beta**: 90% on first rate cut, declining with each subsequent cut. Deposit cost of funds at 136bp as of September.
- **M&A Strategy**: Open to mainland opportunities in Western states, but no active discussions. Hawaii market saturated with 25%+ market share.
- **Credit Risk**: No observable impact from government shutdown. Consumer credit metrics (credit cards, indirect) remain stable.


First Hawaiian, Inc. (FHB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FHB

FHB fundamentals

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