Core Insights - Quad 7 Capital is a team of 7 analysts with nearly 12 years of experience in investment opportunities, known for their February 2020 call to sell everything and go short [1] - The company has maintained an average position of 95% long and 5% short since May 2020, showcasing their strategic approach to market conditions [1] - Their focus is on short- and medium-term investments, income generation, special situations, and momentum trades, emphasizing education for investors [1] Company Expertise - Quad 7 Capital possesses expertise in various fields including business, policy, economics, mathematics, game theory, and sciences [1] - The company aims to provide high-quality research with clear entry and exit targets, saving time for investors [1] Investment Approach - BAD BEAT Investing shares both long and short trades, with a commitment to teaching investors to become proficient traders through their playbook [1] - The benefits of BAD BEAT Investing include understanding market dynamics, executing well-researched trade ideas weekly, and access to multiple chat rooms for collaboration [2] - Additional offerings include daily summaries of key analyst upgrades and downgrades, basic options trading education, and extensive trading tools [2]

Financial Data and Key Metrics Changes - Net income increased compared to the second quarter, driven by higher net interest and non-interest income, partially offset by a higher effective tax rate of 23.2% in the third quarter [5][6] - Total loans declined by approximately $223 million, primarily in commercial and industrial (C&I) loans [6][7] - Net interest income was $169.3 million, an increase of $5.7 million from the prior quarter, with a net interest margin (NIM) of 3.19%, up 8 basis points [9][10] Business Line Data and Key Metrics Changes - Total deposits increased by about $500 million in the third quarter, with commercial deposits rising by $135 million, while retail deposits declined by $43 million [8] - Non-interest income was $57.1 million, benefiting from higher swap income due to favorable market movements [10] Market Data and Key Metrics Changes - The state unemployment rate was 2.7% in August, lower than the national rate of 4.3%, with total visitor arrivals up 0.7% year-over-year [4] - Year-to-date visitor spending reached $4.6 billion, an increase of 4.5% compared to the same period last year [4] Company Strategy and Development Direction - The company aims to maintain a strong credit performance and is open to M&A opportunities, focusing on the mainland due to market share constraints in Hawaii [66][84] - The company is looking to grow loans in areas where it has expertise, such as residential pools of Hawaii loans [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy's resilience despite potential hardships from a federal government shutdown [68][70] - There is an expectation of strong loan growth in the fourth quarter, with a focus on maintaining and strengthening community relationships [22][23] Other Important Information - The company repurchased approximately 965,000 shares at a total cost of $24 million, with $26 million remaining under the approved stock repurchase plan [6] - The allowance for credit losses decreased to $165.3 million, with coverage remaining at 117 basis points of total loans and leases [12] Q&A Session Summary Question: Growth outlook and pipeline demand - Management noted significant paydowns in dealer floor plans and expressed bullishness about the pipeline, expecting strong production in the fourth quarter [18] Question: Core deposit growth and liquidity deployment - Management highlighted success in core deposit growth driven by retail and commercial teams, with expectations of flat total balances by year-end [21][22] Question: NIM management amid Fed cuts - Management indicated that NIM expansion could continue depending on the timing and magnitude of Fed rate cuts, with sufficient loan growth to support this [25][30] Question: M&A strategy and criteria - The company remains open to M&A discussions, focusing on opportunities in the mainland and Western States [66][84] Question: Impact of federal spending and local economy - Management believes the long-term trend of defense-focused federal spending in Hawaii will remain strong, with no significant changes expected [74]

Financial Data and Key Metrics Changes - Net income increased compared to the second quarter, driven by higher net interest and non-interest income, partially offset by a higher effective tax rate of 23.2% [5][6] - Total loans declined by approximately $223 million in the quarter, primarily in Commercial and Industrial (C&I) loans [6][7] - Net interest income was $169.3 million, an increase of $5.7 million from the prior quarter, with a net interest margin (NIM) of 3.19%, up eight basis points [9][10] Business Line Data and Key Metrics Changes - Total deposits increased by about $500 million in the third quarter, with commercial deposits rising by $135 million, while retail deposits declined by $43 million [8] - Non-interest income was $57.1 million, benefiting from higher swap income due to favorable market movements [10] Market Data and Key Metrics Changes - The state unemployment rate was 2.7% in August, lower than the national rate of 4.3%, indicating a stable local economy [4] - Year-to-date visitor spending reached $4.6 billion, up 4.5% compared to the same period last year, reflecting a stable tourism sector [4] Company Strategy and Development Direction - The company aims to maintain a strong loan growth trajectory, focusing on areas where it has expertise, such as residential pools of Hawaii loans [20][21] - The investment portfolio is being held flat, with a strategy to restart purchases after a period of letting it run down [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy's resilience despite potential hardships from a federal government shutdown [68][70] - The company anticipates a strong fourth quarter, with expectations for loan growth and continued positive NIM momentum [9][30] Other Important Information - The bank's credit performance remains strong, with low credit risk and stable metrics, although classified assets increased by $30.1 million due to a single borrower [11][12] - The company repurchased approximately 965,000 shares at a total cost of $24 million, with $26 million remaining under the approved stock repurchase plan [6] Q&A Session Summary Question: Growth outlook and pipeline demand - Management noted significant paydowns in dealer floor plans and expressed bullishness about the pipeline, expecting strong production in the fourth quarter [19] Question: Core deposit growth and liquidity deployment - The company expects total deposits to remain flat, with success attributed to retail and commercial teams strengthening community relationships [23] Question: Managing deposit costs amid Fed cuts - Management indicated that NIM expansion could be challenging depending on the timing and magnitude of Fed rate cuts, but loan growth is expected to support margin expansion [26][30] Question: Capital priorities and M&A strategy - The company remains open to M&A opportunities, focusing on the Western U.S. market, with no changes to previous guidance [38][66] Question: Impact of federal spending and local economy - Management believes the long-term trend of defense-focused federal spending in Hawaii will remain strong, despite current uncertainties [74]

Financial Data and Key Metrics Changes - Net income increased compared to the second quarter, driven by higher net interest and non-interest income, partially offset by a higher effective tax rate of 23.2% in the third quarter [7][8] - Total loans declined by $223 million in the quarter, primarily in commercial and industrial (C&I) loans [9][10] - Average deposits increased by approximately $500 million in the third quarter, with commercial deposits rising by $135 million [11][12] Business Line Data and Key Metrics Changes - Non-interest income was $57.1 million in the quarter, benefiting from higher BOLI income and swap income [14] - The total cost of deposits fell by one basis point, with non-interest bearing deposits making up 33% of total deposits [13] Market Data and Key Metrics Changes - The state unemployment rate was 2.7% in August, lower than the national rate of 4.3% [5] - Year-to-date visitor spending was $4.6 billion, up 4.5% compared to the same period last year [6] Company Strategy and Development Direction - The company aims to maintain strong loan growth and is considering pool purchases in areas where it has expertise, such as residential loans in Hawaii [24][25] - The company is focused on strengthening relationships in the community to drive core deposit growth [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy's resilience despite potential hardships from a federal government shutdown [76][78] - The company expects to see strong loan production in the fourth quarter, with a focus on maintaining a solid credit performance [10][15] Other Important Information - The company repurchased approximately 965,000 shares at a total cost of $24 million, with $26 million remaining under the approved stock repurchase plan for 2025 [8][9] - The allowance for credit losses decreased to $165.3 million, with coverage remaining at 117 basis points of total loans and leases [16] Q&A Session Summary Question: Growth outlook and pipeline - Management noted that the third quarter saw significant paydowns in dealer floor plans but remains bullish on the business, expecting strong production in the pipeline for the fourth quarter [22][23] Question: Core deposit growth - Management highlighted success in core deposit growth driven by retail and commercial teams, with expectations for seasonal increases in deposits [26][27] Question: Managing deposit costs amid Fed cuts - Management indicated that the ability to manage deposit costs will depend on the timing and magnitude of Fed rate cuts, with expectations for continued margin expansion [31][39] Question: Capital priorities and M&A strategy - The company remains open to M&A opportunities, particularly in the Mainland, while focusing on maintaining a strong loan portfolio [46][74] Question: Impact of federal spending and local economy - Management expressed confidence in the long-term stability of federal spending in Hawaii, particularly in defense, despite current challenges [81][82]

Financial Data and Key Metrics Changes - Net income increased compared to the second quarter, driven by higher net interest and non-interest income, partially offset by a higher effective tax rate of 23.2% [4][9] - Total loans declined by approximately $223 million in the quarter, primarily in Commercial and Industrial (C&I) loans [5][6] - Net interest income was $169.3 million, an increase of $5.7 million from the prior quarter, with a net interest margin (NIM) of 3.19%, up eight basis points [9][10] Business Line Data and Key Metrics Changes - Total deposits increased by about $500 million in the third quarter, with commercial deposits rising by $135 million, while retail deposits declined by $43 million [7][8] - Non-interest income was $57.1 million, benefiting from higher swap income due to favorable market movements [10] Market Data and Key Metrics Changes - The state unemployment rate was 2.7% in August, lower than the national rate of 4.3%, with total visitor arrivals up 0.7% year-over-year [3] - Year-to-date visitor spending reached $4.6 billion, an increase of 4.5% compared to the same period last year [3] Company Strategy and Development Direction - The company aims to maintain strong loan growth, particularly in areas where it has expertise, such as residential pools of Hawaii loans and properties in Hawaii [18][19] - The investment portfolio is being held flat, with a restart of purchases after a period of letting it run down [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the local economy's resilience despite potential hardships from a federal government shutdown [52][54] - The company anticipates a strong fourth quarter, with expectations for loan growth to cover the impact of potential rate cuts [27][39] Other Important Information - The bank's credit performance remains strong, with classified assets increasing by $30.1 million due to a single borrower, and net charge-offs at $4.2 million for the quarter [11][12] - The company has a share buyback authority of $100 million, with $74 million executed so far [32] Q&A Session Summary Question: Growth outlook and pipeline demand - Management noted significant paydowns in dealer floor plans and expressed bullishness about the pipeline, expecting strong production in the fourth quarter [17][18] Question: Core deposit growth success - Success in core deposit growth attributed to strong relationship management by retail and commercial teams [20] Question: NIM management with Fed cuts - Management indicated that NIM expansion depends on the timing and magnitude of Fed rate cuts, with sufficient loan growth expected to support margin expansion [22][27] Question: M&A strategy - The company remains open to mainland M&A opportunities but has no immediate plans [30][50] Question: Impact of federal spending on Hawaii - Management believes the long-term trend of defense-focused federal spending in Hawaii will remain strong despite current uncertainties [58] Question: Changes in competitive pricing behavior - No significant changes in competitive dynamics or pricing observed in the market [60]

Financial Performance - Net income for Q3 2025 was $73.8 million[4,5] - Diluted earnings per share (EPS) increased to $0.59 in Q3 2025, compared to $0.58 in Q2 2025[4] - Net interest margin (NIM) increased by 8 basis points to 3.19%[4,6] - The efficiency ratio improved to 55.3% in Q3 2025, compared to 57.2% in Q2 2025[4] Balance Sheet - Total assets increased to $24.0987 billion as of September 30, 2025, compared to $23.8371 billion as of June 30, 2025[8] - Total deposits increased by $498.1 million to $20.7296 billion[8,9] - Total loans and leases decreased by $222.5 million[8,9] Asset Quality - The allowance for credit losses (ACL) to total loans and leases ratio was 1.17%[35,36] - A $4.5 million provision was recorded[6] Capital Management - The CET1 capital ratio was 13.2%[6] - The company repurchased 964 thousand shares of common stock at a total cost of $24 million[9]

First Hawaiian (FHB) reported $226.39 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 7.8%. EPS of $0.59 for the same period compares to $0.48 a year ago.The reported revenue represents a surprise of +3.71% over the Zacks Consensus Estimate of $218.28 million. With the consensus EPS estimate being $0.52, the EPS surprise was +13.46%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

First Hawaiian (FHB) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.52 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 +13.46%. A quarter ago, it was expected that this bank holding company would post earnings of $0.49 per share when it actually produced earnings of $0.58, delivering a surprise of +18.37%.Over the last four quarters, ...

Financial Performance - Net income for Q3 2025 was $73.8 million, or $0.59 per diluted share, compared to $73.2 million in the previous quarter[9]. - Net income for the three months ended September 30, 2025, was $73,840 thousand, up from $73,247 thousand in the prior quarter, reflecting a growth of 0.8%[21]. - Net income for Q3 2025 was $73,840,000, an increase from $61,492,000 in Q3 2024, representing a year-over-year growth of 20.5%[39]. - Average total stockholders' equity increased to $2,710,273,000 in Q3 2025 from $2,588,806,000 in Q3 2024, reflecting a growth of 4.7%[39]. - Return on average total stockholders' equity for Q3 2025 was 10.81%, compared to 9.45% in Q3 2024, indicating an improvement of 14.3%[39]. - Basic earnings per share for the three months ended September 30, 2025, was $0.59, compared to $0.58 in the prior quarter, reflecting a growth of 1.7%[21]. Asset and Deposit Growth - Total assets increased to $24.1 billion as of September 30, 2025, up from $23.8 billion at June 30, 2025[3]. - Total assets increased to $24,098,728 thousand as of September 30, 2025, up from $23,837,147 thousand as of June 30, 2025, representing a growth of 1.1%[19]. - Total deposits increased by $498.1 million to $20.7 billion compared to the prior quarter[3]. - Total deposits reached $20,729,557 thousand as of September 30, 2025, an increase from $20,231,419 thousand as of June 30, 2025, marking a rise of 2.5%[19]. - Total deposits as of September 30, 2025, reached $20,729,557, a slight decrease from $20,723,131 on June 30, 2025[33]. Income and Revenue - Net interest income for Q3 2025 was $169.3 million, a 3.5% increase from $163.6 million in the prior quarter[4]. - Noninterest income rose to $57.1 million in Q3 2025, up $3.1 million from $54.0 million in the previous quarter[6]. - Net interest income for the three months ended September 30, 2025, was $169,331 thousand, compared to $163,583 thousand for the previous quarter, an increase of 4.3%[21]. - Noninterest income for the three months ended September 30, 2025, was $57,060 thousand, compared to $53,958 thousand in the previous quarter, an increase of 5.2%[21]. - Net interest income increased by $28.4 million from $468.1 million in the nine months ended September 30, 2024, to $496.5 million in 2025[26]. Credit Quality and Losses - The allowance for credit losses was $165.3 million, representing 1.17% of total loans and leases as of September 30, 2025[10]. - The provision for credit losses was $4,500 thousand for the three months ended September 30, 2025, unchanged from the previous quarter[21]. - Non-performing assets totaled $30,933, an increase from $28,591 as of June 30, 2025, indicating a rise in credit risk[34]. - The ratio of net loans and leases charged-off to average loans and leases outstanding was 0.12% for the three months ended September 30, 2025[35]. - The total accruing loans and leases past due 90 days or more increased to $5,889 from $4,438 in the previous quarter, indicating potential future credit issues[34]. Capital Ratios and Efficiency - The tier 1 leverage ratio increased to 9.16% as of September 30, 2025, compared to 9.12% at June 30, 2025[11]. - The Common Equity Tier 1 Capital Ratio stood at 13.24% as of September 30, 2025, compared to 13.03% as of June 30, 2025, indicating improved capital strength[19]. - The efficiency ratio improved to 55.3% in Q3 2025, down from 57.2% in the previous quarter[7]. - Total stockholders' equity increased to $2,733,921 thousand as of September 30, 2025, from $2,694,545 thousand as of June 30, 2025, a rise of 1.5%[19]. Loan and Lease Performance - Total loans and leases amounted to $14,269.0 million with an average yield of 5.47% for the nine months ended September 30, 2025, compared to $14,325.1 million and 5.68% for the same period in 2024[26]. - Total loans and leases reached $14,129.3 million, a slight decrease from $14,351.8 million in the previous period[32]. - Commercial and industrial loans amounted to $2,027.5 million, down from $2,370.2 million, reflecting a decrease of 14.5%[32]. - Residential mortgage loans totaled $4,077.9 million, a decrease from $4,946.4 million, indicating a decline of 17.6%[32]. - Consumer loans reached $1,013.6 million, down from $1,125.1 million, reflecting a decrease of 9.9%[32].

Core Insights - First Hawaiian, Inc. reported strong financial results for the third quarter of 2025, highlighting market-leading performance and effective teamwork [2][3]. Financial Performance - Net income for the third quarter was $73.8 million, or $0.59 per diluted share, compared to $73.2 million, or $0.58 per diluted share in the previous quarter [12][24]. - Net interest income increased to $169.3 million, up $5.7 million or 3.5% from the prior quarter [5][20]. - Noninterest income rose to $57.1 million, an increase of $3.1 million compared to the previous quarter [7][20]. - Noninterest expense was $125.7 million, a slight increase of $0.8 million from the prior quarter [8][20]. Balance Sheet Highlights - Total assets reached $24.1 billion, up from $23.8 billion at the end of the previous quarter [4][20]. - Total deposits increased by $498.1 million to $20.7 billion [4][20]. - Gross loans and leases decreased by $222.5 million to $14.1 billion [4][20]. Asset Quality - The allowance for credit losses was $165.3 million, representing 1.17% of total loans and leases, unchanged from the previous quarter [10][20]. - Net charge-offs for the quarter were $4.2 million, or 0.12% of average loans and leases, compared to $3.3 million or 0.09% in the prior quarter [10][20]. Capital and Dividends - Total stockholders' equity remained stable at $2.7 billion [11][20]. - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 28, 2025 [2][12]. Efficiency and Ratios - The efficiency ratio improved to 55.3% from 57.2% in the previous quarter [8][20]. - The net interest margin increased by 8 basis points to 3.19% [5][20]. - The effective tax rate for the quarter was 23.2%, up from 16.9% in the previous quarter [9][20]. Shareholder Actions - The company repurchased 964 thousand shares of common stock at a total cost of $24.0 million during the third quarter [13][20].