DEF 14A: First Hawaiian Inc. Reports Strong 2025 Performance

First Hawaiian, Inc. reported strong financial performance in 2025 with a 20% increase in net income and a new $250 million stock repurchase program authorized for 2026, while maintaining disciplined capital management and community engagement.

Summary

• Net income increased 20% to $276.3 million in 2025 from $230.1 million in 2024.
• Net interest income grew from $622.7 million in 2024 to $663.7 million in 2025.
• Diluted earnings per share were $2.20.
• Total assets at December 31, 2025, were $24.0 billion.
• Loans and leases were $14.3 billion, down 1%.
• The efficiency ratio was 56.43%, reflecting maintained expense discipline.
• Net interest margin increased by 20 basis points to 3.15% in 2025 from 2.95% in 2024.
• Common stock repurchased in 2025 totaled $100 million.
• The Board authorized a new $250 million stock repurchase program in January 2026.
• A strong and consistent quarterly dividend of $0.26 per share was maintained in 2025.
• Stockholders' equity increased from $2.62 billion at December 31, 2024, to $2.77 billion at December 31, 2025.
• The Common Equity Tier 1 capital ratio was 13.17% at December 31, 2025, an increase of 37 basis points.
• The company contributed $2.5 million to the First Hawaiian Bank Foundation, which in turn donated $5.6 million to 350 charitable organizations.
• Employees and retirees contributed over $886,000 to 36 charities through the annual Kkua Mai giving campaign, with 99% participation.
• Received its eleventh consecutive Outstanding rating from the Federal Deposit Insurance Corporation (FDIC) under the Community Reinvestment Act, providing $1.7 billion in loans for community development.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive filing, highlighting robust financial performance, effective capital management, and continued commitment to community, despite a slight decrease in loans and leases.

Positives

• Net income increased by 20.0% to $276.3 million in 2025 compared to 2024.
• Net interest margin increased by 20 basis points to 3.15% in 2025.
• Maintained strong expense discipline, as noninterest expenses decreased by 0.4% to $499.3 million.
• Maintained a strong capital position with a Common Equity Tier 1 capital ratio of 13.17%, an increase of 37 basis points.
• Repurchased $100 million of common stock in 2025 and announced a new $250 million stock repurchase program in January 2026.
• Maintained a strong and consistent quarterly dividend of $0.26 per share in 2025.
• Received its eleventh consecutive Outstanding rating from the FDIC under the Community Reinvestment Act.
• Core Net Income of $269.602 million exceeded both the 2025 target and 2024 actual results.
• Asset Quality Metric and Efficiency Ratio also exceeded target payouts, both achieving 150% of target.

Negatives

• Loans and leases decreased by 1% to $14.3 billion.
• The Supplemental Executive Retirement Plan (SERP) was frozen as of July 1, 2019, with no new accruals of benefits.

Risks

• Risks associated with financial matters, including financial reporting, accounting practices and policies, disclosure controls and procedures, and internal control over financial reporting.
• Risks and exposures associated with compensation policies, plans, and practices, including executive compensation and the general compensation structure.
• Risks associated with the independence of the Board and Board/committee composition and functioning.
• Enterprise-wide risk management framework, including overall risk appetite and risk management strategy.
• Significant credit policies and market risk management.
• Liquidity risk, with an annually approved acceptable level.
• Operational risk, including key risk indicators.
• Capital planning and significant capital policies.
• Stress testing processes and results.
• Compliance risk.
• Information security and technology risks, including cybersecurity risk management programs.
• Model risks.

Future Outlook

The Board of Directors authorized a $250 million stock repurchase program in January 2026, further demonstrating commitment to returning capital to stockholders while preserving flexibility to support future growth. The company is excited about its future and confident in its ability to deliver lasting value to stockholders.

Management Comments

• "At First Hawaiian Bank, our purpose has always been rooted in serving our customers, supporting our communities and delivering long-term value to our stockholders."
• "We delivered another year of strong profitability, with net interest income growing from $622.7 million in 2024 to $663.7 million in 2025, and net income increasing from $230.1 million in 2024 to $276.3 million in 2025."
• "We are excited about our future and confident in our ability to deliver lasting value to you—our stockholders."

Industry Context

StockSavvy.ai notes that First Hawaiian, Inc.'s strong financial performance in 2025, particularly the increase in net interest income and net interest margin, occurred despite broader market expectations for significant interest rate cuts. The company's ability to reduce deposit rates and manage expenses effectively in a higher-for-longer interest rate environment demonstrates strong operational agility compared to general industry trends that anticipated more challenging conditions.

Comparison to Industry Standards

• The company's executive compensation peer group includes banks such as Atlantic Union Bankshares, Bank of Hawaii Corporation, BankUnited, Inc., and Wintrust Financial Corporation, with FHB positioned near the median in terms of assets, revenues, and market capitalization.
• Performance Share Units for Named Executive Officers (NEOs) are measured against a Compensation Peer Group for Return on Average Tangible Equity (ROATE) and Return on Average Tangible Assets (ROATA), and against the KBW Regional Bank Index for Total Shareholder Return (TSR).
• For the 2023-2025 LTIP cycle, the company achieved an 82nd percentile ROATE and 35th percentile ROATA relative to its peer group, and a 38th percentile TSR relative to the KBW Regional Bank Index, resulting in a 134.7% payout of target shares.

Management Changes

Corporate Governance

Related Party Transactions

• Certain businesses in which Mr. Fujimoto, Dr. Wo, Dr. Mugiishi, and Ms. Freas have material interests have loans from First Hawaiian Bank made in the ordinary course of business, on substantially the same terms as comparable loans with unrelated persons, and without more than normal risk of collectability or other unfavorable features.
• The company expects to continue engaging in ordinary banking transactions, including loans, with directors, executive officers, their immediate family members, and companies in which they have a 5% or more beneficial ownership interest, on market terms and without unusual risk.

Stakeholder Impact

• Shareholders: Strong financial performance, increased net income, consistent dividends, stock repurchases, and a new repurchase program demonstrate commitment to returning capital and enhancing shareholder value.
• Employees: The company employs approximately 2,000 individuals and invests in their development, career advancement, health and safety, offering competitive compensation, benefits, and health/wellness programs. Employees showed high engagement with 99% participation in the Kkua Mai giving campaign and contributed 22,000 volunteer hours.
• Customers: The company offers a comprehensive suite of banking services and focuses on serving customers in its core markets of Hawaii, Guam, and Saipan, with an excellent record of serving small businesses and low-income individuals.
• Communities: The company contributed $2.5 million to the First Hawaiian Bank Foundation, which donated $5.6 million to 350 charitable organizations. It also provided $1.7 billion in loans supporting affordable housing, nonprofits, economic development, and lowand moderate-income communities, with employees volunteering extensively.
• Regulators: The company received its eleventh consecutive Outstanding rating from the FDIC under the Community Reinvestment Act, demonstrating strong compliance with legal and regulatory requirements.

Next Steps

• The 2026 Annual Meeting of Stockholders will be held virtually on Wednesday, April 22, 2026, at 8:00 a.m. Hawaiian Standard Time.
• Stockholders will vote on the election of eight director nominees, an advisory vote on Named Executive Officer compensation, and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2026.
• The Board of Directors and senior officers, along with representatives from the independent accounting firm, will attend the Annual Meeting to respond to questions.
• Stockholders are encouraged to read the 2026 Proxy Statement and 2025 Annual Report prior to the meeting.
• Stockholders wishing to present proposals for the 2027 Annual Meeting must submit them by November 12, 2026 (for inclusion in proxy materials) or between December 23, 2026, and January 22, 2027 (under Bylaws).
• Stockholders intending to solicit proxies for director nominees other than the company's must provide notice by February 21, 2027.

Key Dates

Recommendation

The filing demonstrates robust financial health with a 20% increase in net income, strong capital ratios, and effective expense management. The authorization of a new $250 million stock repurchase program signals continued commitment to shareholder returns. While loans and leases saw a slight dip, the overall performance, especially exceeding financial targets in a challenging macroeconomic environment, suggests strong operational execution and a positive outlook for long-term value creation, making it an attractive investment.

Keywords

First Hawaiian Inc., FHB, banking, Hawaii, Guam, Saipan, financial services, proxy statement, corporate governance, executive compensation, stock repurchase, dividends, net income, net interest margin, asset quality, efficiency ratio, community reinvestment, risk management, board of directors