FH Bank Posts Stellar Second Quarter Results: Strong Loan Growth, Stable Deposits, and Healthy Credit Metrics
The bank has released its financial results for the second quarter of 2026, showcasing a strong start to the year. Chairman, President, and CEO Robert Harrison expressed his excitement about the company's recently announced deal with TriCo Bancshares, highlighting the potential for building a leading Pacific banking franchise.
According to local economic data, statewide employment rates remained relatively stable at 2.5% in May compared to the national unemployment rate of 4.3%. Total visitor arrivals were up 2.9% compared to last year, primarily driven by increased visitors from the U.S. mainland and Japan. Year-to-date spending through May reached $9.7 billion, a 7.5% increase from 2025 levels.
The housing market in Hawaii also remained stable, with median single-family home sales prices on Oahu reaching $1.2 million, up 10.4% from the prior year. Median condo sales prices on Oahu were up 3.5% from the previous year.
Turning to its financial performance, FH Bank reported strong results across various metrics. Loans grew by $137 million in the quarter, with C&I and CRE loans leading the charge. Completed construction projects led to the conversion of $95 million of construction loan balances to CRE loans.
Total deposits were down $623 million, primarily due to outflows of public deposits. However, retail deposits remained essentially flat, while commercial deposits declined by about $156 million, consistent with expected seasonal volatility. Public time deposits dropped by $115 million.
The bank's net interest income reached $171 million, a $3.5 million increase from the prior quarter, driven by deposit mix changes and repricing, higher loan and security yields, and lower cash balances. The NIM was 3.25%, up six basis points from the previous quarter.
Non-interest income was $60.3 million, primarily due to higher BOLI income, an excise tax refund, and higher swap fees. Non-interest expense in the second quarter was $130.4 million, with expenses related to the TriCo transaction amounting to $4.2 million.
Chief Financial Officer James Moses emphasized the bank's healthy credit performance and metrics during the quarter, highlighting its strong position to benefit from a higher-for-longer rate scenario.
