First Hawaiian Reports Third-Quarter Net Income of $63.7 Million, Margin Rises to 3.30% and $0.26 Dividend Declared
First Hawaiian, Inc. (NASDAQ: FHB), headquartered in Honolulu, Hawaii, reported on October 23 financial results for the quarter ended September 30, 2026. Net income was $63.7 million, or $0.52 per diluted share, compared with $73.4 million, or $0.60, in the second quarter and $73.8 million, or $0.59, a year earlier. Its principal subsidiary, First Hawaiian Bank, founded in 1858 as Bishop & Company, is Hawaii's oldest and largest financial institution, with branches across Hawaii, Guam and Saipan and 49 branches in total.
Chairman, President and CEO Bob Harrison said he was pleased with the solid earnings and the continued trust customers place in the bank. Deposit growth in a competitive market reflects the strength of those relationships, he said, and the balance sheet is well positioned to benefit from rising interest rates; as the company prepares for the Tri Counties Bank acquisition, it is focused on building on that foundation. On October 21 the board declared a quarterly cash dividend of $0.26 per share, payable November 27 to stockholders of record on November 16.
Net interest income was $174.1 million, up $3.1 million from the prior quarter, and the net interest margin rose 5 basis points to 3.30%. Noninterest income was $56.1 million, down $4.2 million, while noninterest expense rose $29.6 million to $160.0 million, including a $24.3 million expense from an agreement to settle tax liabilities from the 2016 corporate reorganization (which also produced a $31.0 million tax benefit, taking the effective tax rate to -27.8%) and $6.7 million of merger-related costs. The efficiency ratio was 69.2%, and the company repurchased no shares in the quarter.
Total assets were $23.8 billion at September 30, up from $23.6 billion at June 30. Loans and leases fell $115.1 million to $14.5 billion, deposits rose $50.4 million to $20.2 billion, and stockholders' equity was $2.8 billion. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.61%, 13.50% and 14.74%.
The company recorded a $20.3 million provision for credit losses, up from $5.6 million in the second quarter, driven by a $12.5 million partial charge-off on a single commercial real estate loan and other CRE downgrades. Net charge-offs were $21.9 million, or 0.60% of average loans on an annualized basis; non-performing assets were $46.0 million, or 0.32%, and the allowance for credit losses was $164.4 million, or 1.14% of total loans.
Source: GSM · USA (original Chinese edition)
Photo: Honolulu 市中心 Bishop Street 金融区（资料图）。KAVEBEAR 摄，CC BY 2.0，经 Wikimedia Commons 取用 / The downtown Honolulu financial district on Bishop Street (file photo). Photo by KAVEBEAR, CC BY 2.0, via Wikimedia Commons
