GET DAILY SIGNALSFirst Hawaiian (FHB) Q3 2026 Earnings: Margin Growth Offsets One-Time Items
Key Takeaways
- First Hawaiian reported third quarter 2026 net income of $63.7 million, or $0.52 per diluted share, down from $0.60 per share in the prior quarter.
- Net interest margin (NIM) — the spread between interest earned on loans and interest paid on deposits — expanded 5 basis points to 3.30%.
- The provision for credit losses jumped to $20.3 million, driven largely by a $12.5 million partial charge-off on a single Seattle office loan.
- Results included one-time items: a $24.3 million tax settlement expense and $6.7 million in merger-related costs, partly offset by a $31.0 million tax benefit.
- The quarterly dividend was held steady at $0.26 per share, and the company did not repurchase shares during the period.
- The common equity tier 1 (CET1) capital ratio — a core gauge of a bank's financial strength — improved to 13.50% from 13.27%.
- For more context on the ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated FHB pages on Tickeron.
- Investors looking for automated trading ideas can also explore Trending AI Robots for data-driven market signals.
Earnings Context and Why It Matters
First Hawaiian, Inc. (FHB) is the parent of First Hawaiian Bank, the oldest and largest bank headquartered in Hawaii, with operations across Hawaii, Guam, and Saipan. As a regional bank, its quarterly results are closely watched as a signal of Hawaii's local economy and commercial real estate (CRE) conditions. This report also arrives as the company prepares to close its pending merger with TriCo Bancshares, making expense trends and capital positioning especially relevant. With an asset-sensitive balance sheet, First Hawaiian is positioned to benefit from the higher-for-longer interest rate environment, so investors are paying close attention to margin expansion and loan portfolio quality. I checked a few comparable names using Tickeron’s AI Screener to see how FHB stacks up on key fundamentals.
Reported Results
For the third quarter ended September 30, 2026, First Hawaiian reported net income of $63.7 million, or $0.52 per diluted share, down from $73.4 million, or $0.60 per share, in the second quarter of 2026. The result fell short of the consensus analyst estimate of $0.56 per share.
Net interest income (NII) rose $3.1 million to $174.1 million, supported by a net interest margin that climbed 5 basis points to 3.30%. Noninterest income declined to $56.1 million from $60.3 million in the prior quarter. Noninterest expense surged to $160.0 million from $130.4 million, reflecting a $24.3 million California tax settlement expense and $6.7 million in merger-related costs; these were partially offset by a $31.0 million income tax benefit tied to the same settlement.
On the balance sheet, total loans and leases decreased $115.1 million to $14.46 billion, while total deposits increased $50.4 million to $20.20 billion. The provision for credit losses rose to $20.3 million from $5.6 million, driven by a $12.5 million partial charge-off on a participated downtown Seattle office loan and downgrades of four other CRE loans.
Market Reaction and Investor Sentiment
Despite the earnings-per-share miss relative to consensus, shares of First Hawaiian traded higher following the release, suggesting investors weighed the underlying core-banking performance and capital strength more heavily than the headline shortfall. The quarter's largest earnings drags were one-time items — the tax settlement and merger-related costs — rather than a deterioration in the core franchise. At the same time, the spike in the net charge-off rate to 0.60% from 0.11% kept credit quality at the center of the conversation, with management characterizing the Seattle office charge-off as an isolated situation. Investor sentiment appeared to balance the improving margin and deposit trends against lingering uncertainty in the commercial real estate portfolio.
Forward Outlook and Key Factors to Monitor
Looking ahead, the biggest near-term catalyst is the expected fourth quarter 2026 closing of the TriCo Bancshares merger. Management is focused on integration execution, and investors will be watching for any additional merger-related costs and clarity on the combined franchise's expense trajectory.
On the rate side, First Hawaiian remains asset-sensitive, with roughly $400 million in fixed-rate cash flows repricing each quarter at a spread of about 160 to 170 basis points. If the Federal Reserve holds rates higher for longer, the bank expects continued gradual margin accretion, though the pace depends on future rate decisions and deposit repricing behavior.
Credit quality deserves close monitoring. While management called the Seattle office charge-off isolated, the criticized loans ratio rose to 2.86% from 2.14%, and non-performing assets climbed to 0.45% of total loans. Investors will want to see whether these metrics stabilize next quarter. Finally, loan growth remains a question mark, as unexpected CRE payoffs and residential runoff weighed on the portfolio in the third quarter. I’m watching this closely for signs of stabilization in the CRE book.
Using AI Tools in My Research Process
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The tool helps surface relevant peers and technical signals quickly, which is useful when reviewing quarterly bank results like these. It supports filtering by fundamentals, patterns, and performance metrics to build more targeted watchlists.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FHB's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for FHB turned positive on October 15, 2026. Looking at past instances where FHB's MACD turned positive, the stock continued to rise in 36 of 47 cases over the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on FHB as a result. In 53 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
FHB moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.42% 3-day Advance, the price is estimated to grow further. Considering data from situations where FHB advanced for three days, in 175 of 286 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 50-day moving average for FHB moved below the 200-day moving average on October 05, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FHB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
FHB broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FHB entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 49 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.125) is normal, around the industry mean (1.268). P/E Ratio (11.263) is within average values for comparable stocks, (13.372). Projected Growth (PEG Ratio) (0.370) is also within normal values, averaging (1.190). Dividend Yield (0.040) settles around the average of (0.035) among similar stocks. P/S Ratio (3.640) is also within normal values, averaging (3.738).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 51 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating fairly steady price growth. FHB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 82 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FHB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 55, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a regional bank
Industry RegionalBanks
Advertisement