First Hawaiian Inc. Shines in Q3 2026 with Strong Performance and Strategic Progress
On October 23rd, First Hawaiian Inc. (FHB) held its quarterly earnings conference call for the third quarter of 2026, showcasing a solid performance amidst challenging economic conditions.
In his opening remarks, Bob Harrison, Chairman, President, and CEO of FHB, expressed appreciation to investors and analysts for joining the call, highlighting the company's progress in obtaining regulatory and shareholder approvals for its acquisition. Noting that integration planning is going well, Harrison stated that the company continues to expect to close this quarter.
The local economy, although experiencing dual headwinds of higher energy costs and an unusually active storm season, has continued to grow at a slower pace. Statewide unemployment rates remained relatively stable at 2.8% in September, compared to the national rate of 4.2%. The visitor industry remains resilient, with total visitor arrivals up 1.8% from last year.
Turning to FHB's financial performance for Q3 2026, Bob Harrison presented a slide deck that highlighted several key highlights. Net interest income increased, deposit costs declined while deposit balances grew, and the margin increased by 5 basis points. Non-interest expenses came in below expectations, excluding merger-related costs and a tax settlement expense of $24.3 million, which resulted in a $31 million tax benefit for the quarter.
Lea Nakamura, Chief Risk Officer, provided more details on credit quality, noting that overall, it remains good, but with some noise in metrics this quarter. The balance sheet, according to Harrison, remains solid and well-capitalized, providing ample liquidity. FHB's asset sensitivity and positioning for a higher-for-longer rate scenario were also highlighted.
Jamie Moses, Chief Financial Officer, took the stage next, discussing deposit trends and net interest income. Total deposits rose by $50 million in Q3, with commercial and public operating deposits partially offsetting a decline in retail deposits. The non-interest-bearing deposit ratio stood at 32%. Net interest income of $174.1 million was reported, exceeding expectations.
Throughout the call, FHB's senior management team demonstrated confidence and optimism regarding the company's performance and strategic progress. As they move forward with their acquisition plans, investors and analysts took note of the solid financial foundation and resilient local economy that underpin the company's growth prospects.
