Q3 2025 First Hawaiian Inc Earnings Call Transcript
Key Points
- First Hawaiian Inc (FHB) reported an increase in net income for the third quarter, driven by higher net interest and noninterest income.
- The company maintained a strong balance sheet with ample liquidity and repaid a $250 million FHLB advance.
- Total deposits increased by approximately $500 million in the third quarter, with commercial deposits rising by $135 million.
- Net interest margin (NIM) improved to 3.19%, up 8 basis points from the previous quarter, with expectations for continued positive momentum.
- The bank's credit performance remained strong, with low and stable credit risk metrics, and no broad signs of weakness in consumer or commercial books.
- Total loans declined by $223 million in the quarter, primarily due to decreases in C&I and dealer flooring balances.
- Retail deposits fell by $43 million, attributed to seasonal patterns of declining balances in the third quarter.
- The effective tax rate increased to a normalized 23.2% from the previous quarter's benefit due to a change in California tax law.
- Classified assets increased by $30.1 million due to a single borrower, although the bank is not concerned about potential losses.
- The company anticipates potential financial hardships for families due to a federal government shutdown, which could impact the local economy.
Thank you for standing by, and welcome to the First Hawaiian, Inc. third quarter 2025 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Kevin Haseyama, Investor Relations Manager. Please go ahead, sir.
Thank you, Jonathan, and thank you, everyone, for joining us as we review our financial results for the third quarter of 2025. With me today are Bob Harrison, Chairman, President and CEO; Jamie Moses, CFO; and Lee Nakamura, Chief Risk Officer. We have prepared a slide presentation that we will refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the Investor Relations section.
During today's call, we will be making forward-looking statements, so please refer to our Slide 1, for our safe harbor statement. We may also discuss certain non-GAAP financial measures. The appendix to this
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
