First Hawaiian, Inc. Reports Fourth Quarter 2025 Financial Results and Declares Dividend

Core Viewpoint - First Hawaiian, Inc. reported strong financial results for the fourth quarter of 2025, highlighting growth in loans and deposits, and maintaining its position as the most profitable bank in Hawaii [1][12]. Financial Performance - Net income for the fourth quarter of 2025 was $69.9 million, or $0.56 per diluted share, compared to $73.8 million in the prior quarter [12][27]. - Net interest income increased to $170.3 million, up by $1.0 million from the previous quarter, with a net interest margin of 3.21%, an increase of 2 basis points [5][12]. - Noninterest income was $55.6 million, a decrease of $1.5 million from the prior quarter [7][12]. - Noninterest expense decreased slightly to $125.1 million from $125.7 million in the previous quarter, resulting in an efficiency ratio of 55.1% [8][12]. Balance Sheet Highlights - Total assets were $24.0 billion as of December 31, 2025, down from $24.1 billion at the end of the previous quarter [4][12]. - Gross loans and leases increased to $14.3 billion, up by $183.1 million from the prior quarter [4][12]. - Total deposits decreased to $20.5 billion, down by $213.9 million from the previous quarter [4][12]. - Total stockholders' equity rose to $2.8 billion, compared to $2.7 billion at the end of the previous quarter [11][12]. Credit Quality - The allowance for credit losses was $168.5 million, or 1.18% of total loans and leases, compared to $165.3 million, or 1.17%, in the prior quarter [10][12]. - Net charge-offs for the quarter were $5.0 million, or 0.14% of average loans and leases, compared to $4.2 million, or 0.12%, in the previous quarter [10][12]. Capital Management - The Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on February 27, 2026 [1][12]. - A stock repurchase program was adopted for up to $250.0 million of outstanding common stock [2][12]. - The company repurchased approximately 1.0 million shares at a total cost of $26.0 million during the fourth quarter [13][12]. Taxation - The effective tax rate for the fourth quarter was 24.8%, up from 23.2% in the prior quarter [9][12].