First Hawaiian reports solid first quarter with increased net interest income

HONOLULU - First Hawaiian, Inc. (NASDAQ:FHB), a leading bank holding company in Hawaii, has announced its financial results for the first quarter ended March 31, 2025. Trading at a P/E ratio of 12.87, InvestingPro analysis suggests the stock is currently fairly valued. The bank has seen a growth in net interest income and a stable dividend payout amidst economic uncertainties.

The bank’s net income for the quarter was $59.2 million, equating to $0.47 per diluted share. Compared to the previous quarter, total loans and leases saw a decline of $115.2 million, while total deposits decreased by $106.4 million. However, the net interest margin improved by 5 basis points, reaching 3.08%.

First Hawaiian Bank’s Chairman, President, and CEO, Bob Harrison, expressed satisfaction with the quarter’s performance, highlighting the growth in retail deposits and controlled expenses. He reassured customers of the bank’s strong balance sheet and capital position.

The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on May 30, 2025, to stockholders of record as of May 19, 2025. According to InvestingPro data, the bank offers an attractive 4.47% dividend yield and has maintained dividend payments for 10 consecutive years, demonstrating strong commitment to shareholder returns.

In terms of asset quality, the allowance for credit losses was $166.6 million, representing 1.17% of total loans and leases. Net charge-offs for the quarter were $3.8 million, a slight increase from the previous quarter’s $3.4 million.

The bank reported total assets of $23.7 billion as of March 31, 2025, with total stockholders’ equity remaining stable at $2.6 billion. The tier 1 leverage and capital ratios also experienced slight increases compared to the end of 2024. InvestingPro analysis reveals a strong financial health score, with particularly robust metrics in profitability and cash flow management. For detailed insights and additional ProTips about First Hawaiian’s financial position, investors can access the comprehensive Pro Research Report available on InvestingPro.

First Hawaiian, Inc. is the parent company of First Hawaiian Bank, the oldest and largest financial institution in Hawaii, offering a range of banking services to consumer and commercial customers.

This financial summary is based on a press release statement from First Hawaiian, Inc.

In other recent news, First Hawaiian Inc. announced its fourth-quarter 2024 financial results, which revealed a shortfall in both earnings and revenue compared to analyst expectations. The company reported earnings per share of $0.41, falling short of the projected $0.4337, and revenue of $188.13 million, below the anticipated $203.99 million. Despite this, First Hawaiian experienced a rise in net interest income and an improvement in its net interest margin, which increased by 8 basis points to 3.03%. The bank is focusing on technology investments and deposit growth, and it has authorized a $100 million stock buyback program for 2025. Analyst firms such as Piper Sandler and Raymond James engaged with the company during its earnings call, discussing strategies for deposit growth and the impact of potential Federal Reserve rate cuts. First Hawaiian’s management expressed optimism about future performance, highlighting strategic initiatives and robust loan growth, particularly in the commercial real estate sector. The company also noted strong credit performance and a decrease in classified assets, maintaining a stable outlook on asset quality.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.