0001104659-26-021544
SEC filingFirst Hawaiian, Inc. reported net income of $276.3 million for fiscal year 2025, an increase of 20.1% from $230.1 million in 2024. Diluted earnings per share were $2.20, up from $1.79 in the prior year. The company's performance was driven by a 6.6% increase in net interest income to $663.7 million, supported by strong loan and lease financing interest income of $774.4 million. Noninterest income grew 16.8% to $217.0 million, primarily from credit and debit card fees ($61.8 million) and other service charges and fees ($53.2 million). Total assets were $24.0 billion as of December 31, 2025, with loans and leases of $14.3 billion and total deposits of $20.5 billion. The company generated $335.1 million in net cash from operating activities and maintained a strong capital position with a Common Equity Tier 1 risk-based capital ratio of 13.17%.
First Hawaiian, Inc. reported strong financial results for fiscal year 2025, with net income increasing 20.1% to $276.3 million from $230.1 million in 2024. Diluted earnings per share rose to $2.20 from $1.79 in the prior year. The company's total interest income was $951.3 million, a decrease of 2.9% from $980.0 million in 2024, while total interest expense declined 19.5% to $287.6 million. This resulted in net interest income of $663.7 million, up 6.6% from $622.7 million in 2024. Noninterest income grew significantly by 16.8% to $217.0 million, driven by increases in credit and debit card fees ($61.8 million), other service charges and fees ($53.2 million), and bank-owned life insurance ($20.6 million). Total noninterest expense was $499.3 million, essentially flat compared to $501.2 million in 2024.
The company's revenue is derived from two main segments: Retail Banking and Commercial Banking. Retail Banking generated total revenue of $628.8 million in 2025, representing 71.4% of total revenue and showing a 5.1% increase from $598.4 million in 2024. Commercial Banking contributed $255.3 million in revenue, accounting for 29.0% of total revenue but declining 8.6% from $279.5 million in 2024. The remaining revenue was negative $3.4 million from Corporate/Other activities. Interest income from loans and lease financing was the largest component at $774.4 million, though this decreased 3.9% from $805.9 million in 2024. Credit and debit card fees of $61.8 million and other service charges and fees of $53.2 million were significant contributors to noninterest income growth.
The company's net interest margin improved as net interest income grew 6.6% while interest-earning assets remained relatively stable. The provision for credit losses increased to $27.2 million from $14.8 million in 2024, reflecting a more conservative approach to credit risk management. Noninterest expense was well-controlled at $499.3 million, with salaries and employee benefits ($245.9 million) and contracted services and professional fees ($60.3 million) being the largest components. The efficiency ratio (noninterest expense divided by total revenue) improved due to revenue growth outpacing expense growth. Income before provision for income taxes was $354.2 million, up 21.1% from $292.6 million in 2024, demonstrating strong operational performance.
The company generated $335.1 million in net cash from operating activities, a 5.5% increase from $317.5 million in 2024. Investing activities provided $264.1 million in net cash, primarily from proceeds from maturities and principal repayments of investment securities. Financing activities used $291.6 million in net cash, mainly for dividends paid ($131.0 million) and common stock repurchases ($100.0 million). Total assets were $24.0 billion as of December 31, 2025, with loans and leases of $14.3 billion and investment securities of $5.6 billion. Total deposits were $20.5 billion, with interest-bearing deposits of $14.0 billion and noninterest-bearing deposits of $6.5 billion. The company maintained strong capital ratios with Common Equity Tier 1 capital to risk-weighted assets of 13.17% and Tier 1 capital to average assets (leverage ratio) of 9.27%.
The company faces several risk factors including geographic concentration in Hawaii, dependence on real estate markets, exposure to climate-related risks, and regulatory compliance requirements. Management highlighted the potential impact of severe weather, natural disasters, and pandemics on the business, particularly given Hawaii's tourism-dependent economy. The company is subject to various privacy, information security, and data protection laws that could increase compliance costs. Competition from financial technology companies and out-of-market competitors through online channels presents ongoing challenges. The company continues to focus on maintaining strong capital levels, managing credit risk, and controlling expenses while seeking growth opportunities in its core markets.