FHB US Russell 1000 Earnings call
First Hawaiian, Inc. (FHB) · Q2 2026 results and valuation
Share price: $24.87 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 24 Jul 2026 and 24 Apr 2026
Net income up 8.2% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+8.2%
Net income vs Q1 2026
Outlook given
Net income 73.4M vs 67.8M
Revenue +5.0%
2 · How management spoke
Restrained
Less upbeat than 77% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Figure
Year-to-date spending through May reached $9.7 billion, which is an increase of 7.5% compared to 2025 levels.
Valuation
Is First Hawaiian, Inc. undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.6% growth a year (3-year revenue growth), the model's fair value is $33.51 a share — the stock trades 26% below it. Today's price assumes −0.6% growth a year.
Current price
$24.87
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-0.6% for 10 yrs
Fair value / share
$33.51
Buy below
$25.13
Price vs fair value
Undervalued 26%
Price vs buy-below price
Undervalued 1%
Read between the lines
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Guidance
FHB expects to incur more costs in the back half of the year as they move to close and integration.
Source quote
“Now we expect to incur more of those expenses in the back half of the year as we move to close and integration.”
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Fading
The March deposit cost of 1.20% was a little bit lower than the previous quarter's figures, reflecting a declining competitive environment for those costs.
Source quote
“The March deposit cost number was 1.20%, a little bit lower than what we had in the quarter, so you can see the dynamics... We have seen a significant decline in the competitive environment around those from, say, a year or so ago, so we could still see some benefit from that. I would not expect it to go too much lower with rates staying the same in totality in terms of deposit cost.”
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Last period
The company expects the balance sheet repricing story to continue through the year due to the full-quarter impact of the December rate cut.
Source quote
“As we look ahead, we expect the balance sheet repricing story to continue throughout the year. This reflects the full-quarter impact of the December rate cut. Turning to slide seven, noninterest income totaled $52.8 million for the quarter.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The reduction in the allowance for credit losses, both on a nominal and coverage basis was driven primarily by a material decrease in classified assets.”
“Cash balances were lower in Q2, primarily due to the decline in public deposit balances.”
“Our profitability measures remained strong with a return on average tangible assets of 1.28% and a return on average tangible equity of 16.34% for the quarter.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 231.3M | 220.3M | +5.0% | 217.5M | +6.3% |
| Operating income | 95.2M | 87.5M | +8.9% | 88.1M | +8.1% |
| Net income | 73.4M | 67.8M | +8.2% | 73.2M | +0.2% |
| EPS | 0.60 | 0.55 | +9.1% | 0.58 | +3.4% |
| P/E today 10.9 | 12.7 | 10.8 | +1.9 | 12.9 | −0.2 |
Topics
Most discussed now
- New Not only First Hawaiian's existing customers growing their balances incrementally, but also working on a couple of new customer…
- The median condo sales price on Oahu in June was $528,000, up 3.5% from the prior year.
- You see some deposit costs rising there.
- For the C&I, First Hawaiian is really seeing strength in the dealer side.
Faded since Q1 2026
- Dropped It is really important for it to support its communities, and First Hawaiian is actively providing relief and support to help...
- Dropped The $71 million in C&I growth for the quarter—about $24 million of that was dealer floor plan, and the rest...
- Fading First Hawaiian's return on average tangible assets was 1.2% and return on average tangible equity was 15.3% for the first quarter.
- Fading First Hawaiian continues to see meaningful improvement in funding costs with the total cost of deposits declining seven basis points to...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Material agreement · SEC 8-K
- Results of operations; Regulation FD disclosure; Other events · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K