Financial Performance - First Hawaiian (NASDAQ: FHB) has reported strong financial results, with a net interest margin expansion contributing to overall performance [1] - The company has achieved approximately 23% EPS growth since the last update post-Q1, driven by cost control, modest bad debt provisioning, and share buybacks [1] Investment Strategy - The investment approach emphasizes a long-term, buy-and-hold strategy, focusing on stocks that can sustainably deliver high-quality earnings [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-14585 FIRST HAWAIIAN, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 99-0156159 (State or Other Juri ...

Financial Data and Key Metrics Changes - The company's net income increased over 23% compared to the prior quarter, driven by higher net interest and noninterest income, good expense control, and lower provision expense [7] - Total loans increased by approximately $59 million or 0.4% from the prior quarter, with the largest increase in the C and I portfolio [8] - Total deposits increased slightly in the second quarter, with public deposits growing by $166 million, offsetting declines in commercial and retail deposits [10] - Net interest income was $163.6 million, up $3.1 million from the prior quarter, with a net interest margin (NIM) of 3.11%, an increase of three basis points [11] Business Line Data and Key Metrics Changes - The C and I portfolio saw a $125 million increase in dealer floorplan balances, while payoffs from completed construction projects offset some growth [9] - Retail deposits decreased by $23 million, and commercial deposits fell by $127 million due to normal operational fluctuations [10] - Noninterest income was $54 million in the quarter, with expectations for recurring noninterest income to be around $51 million per quarter [12] Market Data and Key Metrics Changes - The statewide seasonally adjusted unemployment rate was 2.8% in June, compared to the national rate of 4.1% [5] - Visitor arrivals were up 2.8% compared to last year, with year-to-date spending at $9 billion, an increase of 6.5% compared to 2024 [6] Company Strategy and Development Direction - The company plans to maintain its investment portfolio balance and has resumed reinvesting cash flows from the investment portfolio [7] - Capital priorities include organic growth, maintaining a stable dividend, and share repurchases, with $50 million remaining under the approved 2025 stock repurchase plan [7][26] Management Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty regarding tariffs affecting car dealers, tourism spending has remained strong, particularly from the U.S. mainland [24] - The company expects full-year loan growth to be in the low single digits, adjusting guidance due to the performance of construction loans [22] Other Important Information - The bank recorded a $4.5 million provision for credit losses in the second quarter, with classified assets increasing by $31.6 million [13][15] - The allowance for credit losses increased to $167.8 million, with coverage remaining flat at 1.17% of total loans and leases [15] Q&A Session Summary Question: What is the outlook for C and I growth and demand from CRE borrowers? - Most C and I growth came from dealer floor plans, with a current balance of $786 million, up $125 million from the previous quarter. There is uncertainty regarding future balances due to tariffs [20][21] Question: How are capital priorities evolving? - Capital priorities remain focused on organic growth, stable dividends, and share repurchases, with more repurchase authority expected to be utilized in the back half of the year [26] Question: What is the impact of the tax law change on the tax rate outlook? - The effective tax rate outlook for the rest of the year is 23.2%, slightly higher than the previous estimate of 23% [45] Question: What is the outlook for loan growth and competition in the market? - Loan growth is expected to be lower than initially anticipated, with competition primarily from institutional buyers for completed construction loans [52][73]

Financial Data and Key Metrics Changes - The company's net income increased over 23% compared to the prior quarter, driven by higher net interest and noninterest income, good expense control, and lower provision expense [6] - Total loans increased by approximately $59 million or 0.4% from the prior quarter, with the largest increase in the C and I portfolio [7] - Net interest income was $163.6 million, up $3.1 million from the prior quarter, with a net interest margin (NIM) of 3.11%, an increase of three basis points [11] Business Line Data and Key Metrics Changes - The C and I portfolio saw a significant increase of $125 million in dealer floorplan balances, while payoffs from completed construction projects offset some of this growth [7] - Total deposits increased slightly, with public deposits growing by $166 million, while commercial and retail deposits declined [10] - Noninterest income was $54 million in the quarter, with expectations for recurring noninterest income to be around $51 million per quarter [12] Market Data and Key Metrics Changes - The statewide seasonally adjusted unemployment rate was 2.8% in June, compared to the national rate of 4.1% [4] - Visitor arrivals were up 2.8% compared to last year, with year-to-date spending reaching $9 billion, an increase of 6.5% compared to 2024 [5] Company Strategy and Development Direction - The company plans to maintain its investment portfolio balance and has resumed reinvesting cash flows from the investment portfolio [6] - Capital priorities include organic growth, maintaining a stable dividend, and share repurchases, with a focus on deploying capital effectively in the back half of the year [26] Management's Comments on Operating Environment and Future Outlook - Management expects full-year loan growth to be in the low single digits, reflecting a cautious outlook due to uncertainties in the market [8] - The company is not observing broad signs of weakness in credit performance, with credit risk remaining low and stable [13] Other Important Information - The company recorded a $4.5 million provision for credit losses in the second quarter, with the allowance for credit losses increasing to $167.8 million [15] - The effective tax rate outlook for the rest of the year is projected at 23.2%, slightly higher than the previous estimate [47] Q&A Session Summary Question: How is the pipeline in terms of C and I? - Most of the C and I growth came from dealer floor plans, which have normalized, and there is uncertainty regarding future balances due to tariffs [20] Question: Have tariffs impacted tourism spending? - Tariffs have created uncertainty for car dealers but have not significantly impacted tourism spending, which has increased [24] Question: What are the capital priorities moving forward? - Capital priorities include organic growth, maintaining dividends, and share repurchases, with a focus on deploying repurchase authority in the back half of the year [26] Question: What is the outlook for M&A? - The company is open to considering M&A opportunities but currently has no specific targets [34] Question: What impacted loan yields in the second quarter? - The mix of loans, with higher margin loans being paid off and replaced by lower margin loans, affected loan yields [37] Question: What is the outlook for fee income in the third quarter? - Fee income is expected to be in the range of $51 million to $52 million for the third quarter [40] Question: What is driving the increase in residential mortgage non-performers? - The consumer at the lower end is getting stretched, leading to an increase in non-performing loans, but the company is not concerned about loss content [64] Question: How does the company view the increase in commercial criticized assets? - Most criticized assets are expected to cure themselves, and the company remains confident in its credit portfolio [71]

Financial Performance - Net income for Q2 2025 was $73.2 million, compared to $59.2 million in Q1 2025[5] - Diluted earnings per share increased to $0.58 in Q2 2025 from $0.47 in Q1 2025[5] - Net interest margin increased by 3 basis points to 3.11%[5, 6] - The efficiency ratio improved to 57.2% in Q2 2025 from 58.2% in Q1 2025[5] - Return on average assets (ROA) was 1.23% and return on average tangible assets (ROATA) was 1.28% for Q2 2025[5] - Return on average equity (ROE) was 11.03% and return on average tangible common equity (ROATCE) was 17.61% for Q2 2025[5] Balance Sheet - Total assets increased to $23.8371 billion as of June 30, 2025, compared to $23.745 billion as of March 31, 2025[8] - Total loans and leases increased by $58.8 million, representing a 0.4% increase[9, 10] - Total deposits increased by $15.6 million[8, 9] - The company repurchased 1.0 million shares of common stock at a total cost of $25 million[9]

Core Insights - First Hawaiian (FHB) reported revenue of $217.54 million for the quarter ended June 2025, marking a year-over-year increase of 6.3% and exceeding the Zacks Consensus Estimate of $213.12 million by 2.08% [1] - The company achieved an EPS of $0.58, up from $0.48 a year ago, and surpassed the consensus EPS estimate of $0.49 by 18.37% [1] Financial Performance Metrics - Net charge-offs were reported at 0.1%, aligning with the two-analyst average estimate of 0.1% [4] - Total Non-Accrual Loans and Leases amounted to $28.59 million, higher than the average estimate of $21.6 million [4] - The net interest margin stood at 3.1%, matching the average estimate based on two analysts [4] - The efficiency ratio was reported at 57.2%, better than the average estimate of 58.7% [4] - Average balance of total earning assets was $21.17 billion, slightly above the average estimate of $21 billion [4] - Total Non-Performing Assets reached $28.59 million, exceeding the average estimate of $24.1 million [4] - Net Interest Income was reported at $163.58 million, surpassing the average estimate of $161.99 million [4] - Net Interest Income (FTE) was $164.4 million, compared to the average estimate of $162.59 million [4] - Total Noninterest Income was $53.96 million, exceeding the average estimate of $51.13 million [4] Stock Performance - Shares of First Hawaiian have returned +1.9% over the past month, while the Zacks S&P 500 composite has changed by +4.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

First Hawaiian (FHB) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +18.37%. A quarter ago, it was expected that this bank holding company would post earnings of $0.46 per share when it actually produced earnings of $0.47, delivering a surprise of +2.17%.Over the last four quarters, ...

EXHIBIT 99.1 For Immediate Release First Hawaiian, Inc. Reports Second Quarter 2025 Financial Results and Declares Dividend HONOLULU, Hawaii July 25, 2025--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today reported financial results for its quarter ended June 30, 2025. "I'm happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter," said Bob Harrison, Chairman, Presi ...

HONOLULU, July 25, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2025. “I’m happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter,” said Bob Harrison, Chairman, President, and CEO. “Our results were driven by strong revenues, well controlled expenses and continued excellent credit quality.” On J ...

Core Viewpoint - First Hawaiian, Inc. plans to release its second quarter 2025 financial results on July 25, 2025, before market opens, followed by a conference call to discuss the results [1] Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be released on July 25, 2025, before the market opens [1] - A conference call to discuss the results will take place on the same day at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) [1] Group 2: Conference Call Access - Participants can access the call by registering through a provided link, which will give them a dial-in number and a personalized PIN code [2] - It is recommended that participants dial in fifteen minutes prior to the scheduled start time to avoid delays [2] Group 3: Webcast Information - A live webcast of the conference call, including a slide presentation, will be available on the company's website [3] - An archive of the webcast will also be accessible at the same location [3] Group 4: Company Overview - First Hawaiian, Inc. is a bank holding company based in Honolulu, Hawaii, and its principal subsidiary is First Hawaiian Bank, the oldest and largest financial institution in Hawaii [4] - The company offers a wide range of banking services, including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card, and merchant processing services [4] - Customers can access their accounts through ATMs, online, and mobile banking channels [4]