First Hawaiian (FHB) Jumps 6.7% After Earnings Beat and Dividend Hike — Is Momentum Sustainable?

• First Hawaiian, Inc. announced third-quarter 2025 earnings showing net interest income of US$169.33 million and net income of US$73.84 million, both higher than the previous year, along with a quarterly dividend declaration and updates on share repurchases and net charge-offs.
• Notably, the company exceeded analyst expectations on both revenue and earnings, attributing its improved results to higher net interest and noninterest income, disciplined cost control, and robust deposit growth.
• We’ll explore how First Hawaiian’s stronger-than-expected earnings growth influences the company’s investment narrative and outlook for sustained performance.

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First Hawaiian Investment Narrative Recap

To own shares in First Hawaiian, Inc., you need to believe in the stability of Hawaii's regional economy, steady tourism-related demand, and the bank's ability to maintain low credit losses while capturing value from strong local deposit relationships. The recent earnings beat confirms First Hawaiian’s improved profitability and robust deposit growth, but deposit stability remains the most important short-term catalyst while geographic concentration is still the biggest risk, the latest results do not materially alter these points.

Of particular interest, First Hawaiian completed the repurchase of 2,980,521 shares for US$74.21 million under its current buyback plan, reflecting an active capital return policy. While this offers immediate support to shareholder value, its significance may be balanced against the company's focus on maintaining healthy core deposit growth as a foundation for future earnings.

Yet, investors should be aware, if commercial and retail deposits begin to decline, the stability supporting First Hawaiian’s recent outperformance...

Read the full narrative on First Hawaiian (it's free!)

First Hawaiian's narrative projects $952.3 million in revenue and $263.9 million in earnings by 2028. This requires 5.8% yearly revenue growth and a $17.4 million earnings increase from the current $246.5 million.

Uncover how First Hawaiian's forecasts yield a $26.12 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community members estimate fair value for First Hawaiian in a wide range from US$26.13 to US$62.40 per share. While recent results highlight healthy asset quality, there are ongoing questions about whether deposit growth can continue to support earnings momentum, explore how your view fits among these varied outlooks.

Explore 2 other fair value estimates on First Hawaiian - why the stock might be worth just $26.12!

Build Your Own First Hawaiian Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Hawaiian research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free First Hawaiian research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Hawaiian's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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