First Hawaiian Reports 20% Net Income Growth to $73.8 Million in Q3 2025

First Hawaiian, Inc. reported a net income of $73.8 million for the third quarter of 2025, reflecting a 20% increase from $61.5 million in the same period last year. This growth was driven by an $12.6 million rise in net interest income, which totaled $169.3 million, alongside a $3.8 million increase in noninterest income, amounting to $57.1 million. The company’s basic and diluted earnings per share both rose to $0.59, up from $0.48 in the prior year. The net interest margin improved to 3.19%, a 24 basis point increase compared to the previous year, attributed to lower deposit funding costs and higher average balances in interest-bearing deposits.

In the nine months ending September 30, 2025, First Hawaiian's net income reached $206.3 million, a 16% increase from $177.6 million in the same period of 2024. The increase in net income was primarily due to a $29.5 million rise in net interest income and a $5.1 million increase in noninterest income, despite a $4.6 million rise in the provision for income taxes. The company’s total loans and leases decreased by 2% to $14.1 billion, driven by declines in commercial and industrial loans, residential real estate loans, and consumer loans, although commercial real estate loans and lease financing saw increases.

Operationally, First Hawaiian continued to maintain a strong capital position, with a Common Equity Tier 1 (CET1) capital ratio of 13.24% as of September 30, 2025, up from 12.80% at the end of 2024. The total stockholders' equity increased to $2.7 billion, a 4% rise from the previous year, bolstered by earnings and comprehensive income, despite dividends paid and stock repurchases totaling $97.8 million and $74.0 million, respectively. The company’s allowance for credit losses (ACL) stood at $165.3 million, representing 1.17% of total loans and leases, an increase from 1.11% at the end of 2024.

In terms of strategic developments, First Hawaiian announced a stock repurchase program in January 2025, allowing for up to $100 million in repurchases throughout the year. As of September 30, 2025, the company had repurchased 2.98 million shares for a total cost of $74 million. The company also declared a quarterly cash dividend of $0.26 per share, scheduled for payment on November 28, 2025. The bank's operational focus remains on enhancing its service offerings and maintaining a strong liquidity position, with cash and cash equivalents totaling $1.9 billion as of the end of the third quarter.

Looking ahead, First Hawaiian anticipates continued challenges in the economic environment, particularly concerning inflation and interest rates, which could impact its profitability and loan demand. The company remains committed to monitoring its credit quality and managing its capital effectively to navigate potential market fluctuations.