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

About this update from First Hawaiian, Inc.

HONOLULU , Jan. 30, 2026 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2025 . “I’m happy to report that First Hawaiian finished 2025 with another strong quarter,” said Bob Harrison , Chairman, President, and CEO. “Loans grew, retail and commercial deposits grew, and we remained the most profitable bank in the state.” On January 28, 2026 , the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on February 27, 2026 , to stockholders of record at the close of business on February 13, 2026 . Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $250 .0 million of its outstanding common stock. Fourth Quarter 2025 Highlights: Net income of $69.9 million , or $0.56 per diluted share Total loans and leases increased $183.1 million versus prior quarter Total deposits decreased $213.9 million versus prior quarter Net interest margin increased 2 basis points to 3.21% Recorded a $7.7 million provision for credit losses Board of Directors declared a quarterly dividend of $0.26 per share Board of Directors adopted a $250.0 million stock repurchase program Balance Sheet Total assets were $24.0 billion at December 31, 2025 versus $24.1 billion at September 30, 2025 . Gross loans and leases were $14.3 billion as of December 31, 2025 , an increase of $183.1 million from $14.1 billion as of September 30, 2025 . Total deposits were $20.5 billion as of December 31, 2025 , a decrease of $213.9 million from $20.7 billion as of September 30, 2025 . Net Interest Income Net interest income for the fourth quarter of 2025 was $170.3 million , an increase of $1.0 million compared to $169.3 million for the prior quarter. The net interest margin was 3.21% in the fourth quarter of 2025, an increase of 2 basis points compared to 3.19% in the prior quarter. Provision Expense During the quarter ended December 31, 2025 , we recorded a $7.7 million provision for credit losses. In the quarter ended September 30, 2025 , we recorded a $4.5 million provision for credit losses. Noninterest Income Noninterest income was $55.6 million in the fourth quarter of 2025, $1.5 million lower compared to noninterest income of $57.1 million in the prior quarter. Noninterest Expense Noninterest expense was $125.1 million in the fourth quarter of 2025, $0.6 million lower compared to noninterest expense of $125.7 million in the prior quarter. The efficiency ratio was 55.1% and 55.3% for the quarters ended December 31, 2025 and September 30, 2025 , respectively. Taxes The effective tax rate was 24.8% and 23.2% for the quarters ended December 31, 2025 and September 30, 2025 , respectively. Asset Quality The allowance for credit losses was $168.5 million , or 1.18% of total loans and leases, as of December 31, 2025 , compared to $165.3 million , or 1.17% of total loans and leases, as of September 30, 2025 . The reserve for unfunded commitments was $35.7 million as of December 31, 2025 and $36.2 million as of September 30, 2025 . Net charge-offs were $5.0 million , or 0.14% of average loans and leases on an annualized basis, for the quarter ended December 31, 2025 , compared to net charge-offs of $4.2 million , or 0.12% of average loans and leases on an annualized basis, for the quarter ended September 30, 2025 . Total non-performing assets were $41.0 million , or 0.29% of total loans and leases and other real estate owned, on December 31, 2025 , compared to total non-performing assets of $30.9 million , or 0.22% of total loans and leases and other real estate owned, on September 30, 2025 . Capital Total stockholders' equity was $2.8 billion on December 31, 2025 versus $2.7 billion on September 30, 2025 . The tier 1 leverage, common equity tier 1 and total capital ratios were 9.27%, 13.17% and 14.42%, respectively, on December 31, 2025 , compared with 9.16%, 13.24% and 14.49%, respectively, on September 30, 2025 . The Company repurchased approximately 1.0 million shares of common stock at a total cost of $26.0 million under the stock repurchase program in the fourth quarter. The average cost was $24.96 per share repurchased. Total repurchases in 2025 were $100.0 million . As to the stock repurchase program, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason. First Hawaiian, Inc. First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu , Hawaii. Its principal subsidiary, First Hawaiian Bank , founded in 1858 under the name Bishop & Company , is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii , Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc. , visit the Company’s website, www.fhb.com . Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time , 8:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register-conf.media-server.com/register/BI1600e9966e084b4dbab703adec5d98af , and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings . The archive of the webcast will be available at the same location. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 , June 30, 2025 and September 30, 2025 . Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama , CFA(808) 525-6268 [email protected] Media Contact: Lindsay Chambers (808) 525-6254 [email protected] Financial Highlights Table 1 For the Three Months Ended For the Year Ended December 31 , September 30 , December 31 , December 31 , (dollars in thousands, except per share data) 2025 2025 2024 2025 2024 Operating Results: Net interest income $ 170,302 $ 169,331 $ 158,753 $ 663,742 $ 622,738 Provision (benefit) for credit losses 7,700 4,500 (750 ) 27,200 14,750 Noninterest income 55,551 57,060 29,376 217,046 185,803 Noninterest expense 125,102 125,744 124,143 499,345 501,189 Net income 69,931 73,840 52,496 276,266 230,129 Basic earnings per share 0.57 0.59 0.41 2.21 1.80 Diluted earnings per share 0.56 0.59 0.41 2.20 1.79 Dividends declared per share 0.26 0.26 0.26 1.04 1.04 Dividend payout ratio 46.43 % 44.07 % 63.41 % 47.27 % 58.10 % Performance Ratios (1) : Net interest margin 3.21 % 3.19 % 3.03 % 3.15 % 2.95 % Efficiency ratio 55.14 % 55.29 % 65.51 % 56.43 % 61.57 % Return on average total assets 1.16 % 1.22 % 0.88 % 1.16 % 0.96 % Return on average tangible assets (non-GAAP)(2) 1.21 % 1.27 % 0.92 % 1.21 % 1.00 % Return on average total stockholders' equity 10.07 % 10.81 % 7.94 % 10.26 % 9.00 % Return on average tangible stockholders' equity (non-GAAP)(2) 15.76 % 17.08 % 12.78 % 16.27 % 14.74 % Average Balances: Average loans and leases $ 14,251,470 $ 14,209,282 $ 14,276,107 $ 14,264,604 $ 14,312,759 Average earning assets 21,215,262 21,271,827 21,079,951 21,206,274 21,284,169 Average assets 23,925,000 23,993,685 23,795,735 23,917,443 23,996,723 Average deposits 20,510,346 20,411,117 20,249,573 20,389,375 20,373,975 Average stockholders' equity 2,756,241 2,710,273 2,629,600 2,693,446 2,557,215 Market Value Per Share: Closing 25.30 24.83 25.95 25.30 25.95 High 26.56 26.72 28.80 28.28 28.80 Low 22.65 23.48 22.08 20.32 19.48 As of As of As of December 31 , September 30 , December 31 , (dollars in thousands, except per share data) 2025 2025 2024 Balance Sheet Data: Loans and leases $ 14,312,529 $ 14,129,383 $ 14,408,258 Total assets 23,955,252 24,098,728 23,828,186 Total deposits 20,515,668 20,729,557 20,322,216 Short-term borrowings — — 250,000 Total stockholders' equity 2,769,365 2,733,921 2,617,486 Per Share of Common Stock: Book value $ 22.57 $ 22.10 $ 20.70 Tangible book value (non-GAAP)(2) 14.46 14.05 12.83 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.29 % 0.22 % 0.14 % Allowance for credit losses for loans and leases / total loans and leases 1.18 % 1.17 % 1.11 % Capital Ratios: Common Equity Tier 1 Capital Ratio 13.17 % 13.24 % 12.80 % Tier 1 Capital Ratio 13.17 % 13.24 % 12.80 % Total Capital Ratio 14.42 % 14.49 % 13.99 % Tier 1 Leverage Ratio 9.27 % 9.16 % 9.14 % Total stockholders' equity to total assets 11.56 % 11.34 % 10.98 % Tangible stockholders' equity to tangible assets (non-GAAP)(2) 7.73 % 7.52 % 7.10 % Non-Financial Data: Number of branches 49 49 48 Number of ATMs 273 275 273 Number of Full-Time Equivalent Employees 1,997 2,001 1,997 __________________________ (1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2025 , September 30, 2025 and December 31, 2024 . (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended For the Year Ended December 31 , September 30 , December 31 , December 31 , (dollars in thousands, except per share amounts) 2025 2025 2024 2025 2024 Interest income Loans and lease financing $ 192,483 $ 196,441 $ 198,347 $ 774,419 $ 805,941 Available-for-sale investment securities 14,997 13,470 12,767 54,086 54,306 Held-to-maturity investment securities 15,711 15,920 17,071 64,577 69,376 Other 13,648 16,744 11,977 58,221 50,421 Total interest income 236,839 242,575 240,162 951,303 980,044 Interest expense Deposits 66,441 70,851 78,465 279,290 335,717 Short-term borrowings — 2,195 2,685 7,421 19,988 Other 96 198 259 850 1,601 Total interest expense 66,537 73,244 81,409 287,561 357,306 Net interest income 170,302 169,331 158,753 663,742 622,738 Provision (benefit) for credit losses 7,700 4,500 (750 ) 27,200 14,750 Net interest income after provision (benefit) for credit losses 162,602 164,831 159,503 636,542 607,988 Noninterest income Service charges on deposit accounts 8,175 8,096 7,968 31,636 31,090 Credit and debit card fees 15,570 15,850 14,834 61,807 64,401 Other service charges and fees 13,829 13,807 13,132 53,153 45,862 Trust and investment services income 9,205 9,212 9,449 36,941 38,306 Bank-owned life insurance 5,204 6,314 5,713 20,613 17,861 Investment securities (losses) gains, net — — (26,171 ) 37 (26,171 ) Other 3,568 3,781 4,451 12,859 14,454 Total noninterest income 55,551 57,060 29,376 217,046 185,803 Noninterest expense Salaries and employee benefits 64,768 61,533 59,003 245,906 235,565 Contracted services and professional fees 13,676 15,785 14,472 60,297 60,912 Occupancy 7,092 7,098 7,708 30,224 28,971 Equipment 14,550 13,834 14,215 56,292 53,902 Regulatory assessment and fees 1,204 3,294 3,745 12,080 19,091 Advertising and marketing 2,326 2,033 1,529 8,573 7,719 Card rewards program 8,344 8,694 7,926 33,363 33,831 Other 13,142 13,473 15,545 52,610 61,198 Total noninterest expense 125,102 125,744 124,143 499,345 501,189 Income before provision for income taxes 93,051 96,147 64,736 354,243 292,602 Provision for income taxes 23,120 22,307 12,240 77,977 62,473 Net income $ 69,931 $ 73,840 $ 52,496 $ 276,266 $ 230,129 Basic earnings per share $ 0.57 $ 0.59 $ 0.41 $ 2.21 $ 1.80 Diluted earnings per share $ 0.56 $ 0.59 $ 0.41 $ 2.20 $ 1.79 Basic weighted-average outstanding shares 123,342,709 124,267,090 127,350,626 124,793,785 127,702,573 Diluted weighted-average outstanding shares 124,158,037 124,970,898 128,167,502 125,509,146 128,325,865 Consolidated Balance Sheets Table 3 December 31 , September 30 , December 31 , (dollars in thousands, except share amount) 2025 2025 2024 Assets Cash and due from banks $ 228,734 $ 249,563 $ 258,057 Interest-bearing deposits in other banks 1,249,018 1,606,080 912,133 Investment securities: Available-for-sale, at fair value (amortized cost: $2,246,716 as of December 31, 2025 , $2,178,092 as of September 30, 2025 and $2,190,448 as of December 31, 2024 ) 2,076,233 1,986,717 1,926,516 Held-to-maturity, at amortized cost (fair value: $3,188,775 as of December 31, 2025 , $3,209,883 as of September 30, 2025 and $3,262,509 as of December 31, 2024 ) 3,533,082 3,594,188 3,790,650 Loans held for sale 1,370 468 — Loans and leases 14,312,529 14,129,383 14,408,258 Less: allowance for credit losses 168,468 165,269 160,393 Net loans and leases 14,144,061 13,964,114 14,247,865 Premises and equipment, net 303,496 302,983 288,530 Accrued interest receivable 77,641 77,878 79,979 Bank-owned life insurance 513,182 507,950 491,890 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 4,638 4,728 5,078 Other assets 828,305 808,567 831,996 Total assets $ 23,955,252 $ 24,098,728 $ 23,828,186 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,968,376 $ 13,947,385 $ 13,347,068 Noninterest-bearing 6,547,292 6,782,172 6,975,148 Total deposits 20,515,668 20,729,557 20,322,216 Short-term borrowings — — 250,000 Retirement benefits payable 99,052 94,504 97,135 Other liabilities 571,167 540,746 541,349 Total liabilities 21,185,887 21,364,807 21,210,700 Stockholders' equity Common stock ( $0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,184,584 / 122,689,256 shares as of December 31, 2025 , issued/outstanding: 142,173,027 / 123,719,585 shares as of September 30, 2025 and issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 ) 1,422 1,422 1,417 Additional paid-in capital 2,576,540 2,572,156 2,560,380 Retained earnings 1,078,885 1,041,573 934,048 Accumulated other comprehensive loss, net (368,140 ) (388,149 ) (463,994 ) Treasury stock (19,495,328 shares as of December 31, 2025 , 18,453,442 shares as of September 30, 2025 and 15,325,949 shares as of December 31, 2024 ) (519,342 ) (493,081 ) (414,365 ) Total stockholders' equity 2,769,365 2,733,921 2,617,486 Total liabilities and stockholders' equity $ 23,955,252 $ 24,098,728 $ 23,828,186 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,331.8 $ 13.2 3.95 % $ 1,471.0 $ 16.3 4.40 % $ 948.9 $ 11.3 4.75 % Available-for-Sale Investment Securities Taxable 2,035.3 15.0 2.94 1,921.2 13.5 2.80 1,987.7 12.7 2.56 Non-Taxable 0.9 — 4.97 1.2 — 5.07 1.4 — 5.30 Held-to-Maturity Investment Securities Taxable 2,973.8 12.6 1.69 3,036.1 12.8 1.68 3,224.8 13.9 1.72 Non-Taxable 594.3 3.5 2.37 595.5 3.6 2.39 601.7 3.9 2.56 Total Investment Securities 5,604.3 31.1 2.22 5,554.0 29.9 2.15 5,815.6 30.5 2.10 Loans Held for Sale 0.3 — 5.83 0.9 — 5.71 1.3 — 5.75 Loans and Leases(1) Commercial and industrial 2,131.5 31.9 5.94 2,144.0 33.6 6.22 2,157.8 35.2 6.50 Commercial real estate 4,599.2 68.8 5.93 4,481.5 69.9 6.18 4,333.1 68.9 6.33 Construction 804.5 13.3 6.55 891.9 15.2 6.78 990.7 17.4 6.99 Residential: Residential mortgage 4,081.3 41.0 4.02 4,077.1 40.4 3.96 4,183.5 40.8 3.90 Home equity line 1,175.7 14.0 4.71 1,167.0 14.0 4.76 1,157.1 13.3 4.55 Consumer 1,022.1 19.8 7.70 1,018.4 19.6 7.63 1,033.2 19.0 7.29 Lease financing 437.2 4.3 3.89 429.4 4.3 3.98 420.7 4.4 4.18 Total Loans and Leases 14,251.5 193.1 5.38 14,209.3 197.0 5.51 14,276.1 199.0 5.55 Other Earning Assets 27.4 0.4 5.69 36.6 0.4 4.72 38.1 0.7 6.73 Total Earning Assets(2) 21,215.3 237.8 4.46 21,271.8 243.6 4.55 21,080.0 241.5 4.56 Cash and Due from Banks 221.1 243.3 226.2 Other Assets 2,488.6 2,478.6 2,489.5 Total Assets $ 23,925.0 $ 23,993.7 $ 23,795.7 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,288.5 $ 20.0 1.26 % $ 6,331.6 $ 21.9 1.37 % $ 5,940.3 $ 21.1 1.42 % Money Market 4,185.4 22.0 2.08 3,837.6 23.4 2.42 4,053.6 26.6 2.61 Time 3,368.8 24.4 2.88 3,353.9 25.5 3.02 3,362.0 30.8 3.64 Total Interest-Bearing Deposits 13,842.7 66.4 1.90 13,523.1 70.8 2.08 13,355.9 78.5 2.34 Other Short-Term Borrowings — — — 206.5 2.2 4.22 250.0 2.7 4.27 Other Interest-Bearing Liabilities 9.5 0.1 3.97 14.4 0.2 5.46 25.3 0.2 4.07 Total Interest-Bearing Liabilities 13,852.2 66.5 1.91 13,744.0 73.2 2.11 13,631.2 81.4 2.38 Net Interest Income $ 171.3 $ 170.4 $ 160.1 Interest Rate Spread(3) 2.55 % 2.44 % 2.18 % Net Interest Margin(4) 3.21 % 3.19 % 3.03 % Noninterest-Bearing Demand Deposits 6,667.6 6,888.0 6,893.7 Other Liabilities 649.0 651.4 641.2 Stockholders' Equity 2,756.2 2,710.3 2,629.6 Total Liabilities and Stockholders' Equity $ 23,925.0 $ 23,993.7 $ 23,795.7 __________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.0 million , $1.0 million and $1.4 million for the three months ended December 31, 2025 , September 30, 2025 and December 31, 2024 , respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended December 31, 2025 , September 30, 2025 and December 31, 2024 , on a fully taxable-equivalent basis, divided by average total earning assets. Average Balances and Interest Rates Table 5 Year Ended Year Ended December 31, 2025 December 31, 2024 Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,313.6 $ 56.5 4.30 % $ 900.8 $ 47.3 5.25 % Available-for-Sale Investment Securities Taxable 1,929.6 54.0 2.80 2,090.0 54.2 2.60 Non-Taxable 1.2 0.1 5.25 1.5 0.1 5.45 Held-to-Maturity Investment Securities Taxable 3,067.9 52.2 1.70 3,321.6 56.6 1.70 Non-Taxable 596.3 14.1 2.37 602.6 15.6 2.58 Total Investment Securities 5,595.0 120.4 2.15 6,015.7 126.5 2.10 Loans Held for Sale 0.4 — 6.00 1.3 0.1 6.02 Loans and Leases(1) Commercial and industrial 2,190.6 134.3 6.13 2,172.4 148.6 6.84 Commercial real estate 4,473.9 272.0 6.08 4,310.1 282.3 6.55 Construction 883.1 58.9 6.67 985.4 73.5 7.46 Residential: Residential mortgage 4,102.9 162.6 3.96 4,220.2 163.4 3.87 Home equity line 1,161.8 54.4 4.68 1,162.9 51.0 4.39 Consumer 1,018.5 77.5 7.61 1,051.5 73.4 6.98 Lease financing 433.8 17.1 3.94 410.3 16.3 3.98 Total Loans and Leases 14,264.6 776.8 5.45 14,312.8 808.5 5.65 Other Earning Assets 32.7 1.7 5.17 53.6 3.1 5.88 Total Earning Assets(2) 21,206.3 955.4 4.51 21,284.2 985.5 4.63 Cash and Due from Banks 230.6 238.3 Other Assets 2,480.5 2,474.2 Total Assets $ 23,917.4 $ 23,996.7 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,275.4 $ 84.2 1.34 % $ 5,990.7 $ 91.6 1.53 % Money Market 3,942.2 91.1 2.31 4,064.0 117.8 2.90 Time 3,357.4 104.0 3.10 3,324.8 126.3 3.80 Total Interest-Bearing Deposits 13,575.0 279.3 2.06 13,379.5 335.7 2.51 Other Short-Term Borrowings 176.0 7.4 4.22 424.9 20.0 4.70 Other Interest-Bearing Liabilities 18.0 0.9 4.72 29.6 1.6 5.39 Total Interest-Bearing Liabilities 13,769.0 287.6 2.09 13,834.0 357.3 2.58 Net Interest Income $ 667.8 $ 628.2 Interest Rate Spread(3) 2.42 % 2.05 % Net Interest Margin(4) 3.15 % 2.95 % Noninterest-Bearing Demand Deposits 6,814.4 6,994.5 Other Liabilities 640.6 611.0 Stockholders' Equity 2,693.4 2,557.2 Total Liabilities and Stockholders' Equity $ 23,917.4 $ 23,996.7 __________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $4.1 million and $5.4 million for the years ended December 31, 2025 and 2024, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the years ended December 31, 2025 and 2024, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 6 Three Months Ended December 31, 2025 Compared to September 30, 2025 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (1.5 ) $ (1.6 ) $ (3.1 ) Available-for-Sale Investment Securities Taxable 0.8 0.7 1.5 Held-to-Maturity Investment Securities Taxable (0.3 ) 0.1 (0.2 ) Non-Taxable — (0.1 ) (0.1 ) Total Investment Securities 0.5 0.7 1.2 Loans and Leases Commercial and industrial (0.2 ) (1.5 ) (1.7 ) Commercial real estate 1.8 (2.9 ) (1.1 ) Construction (1.4 ) (0.5 ) (1.9 ) Residential: Residential mortgage — 0.6 0.6 Home equity line 0.1 (0.1 ) — Consumer — 0.2 0.2 Lease financing 0.1 (0.1 ) — Total Loans and Leases 0.4 (4.3 ) (3.9 ) Other Earning Assets (0.1 ) 0.1 — Total Change in Interest Income (0.7 ) (5.1 ) (5.8 ) Change in Interest Expense: Interest-Bearing Deposits Savings (0.1 ) (1.8 ) (1.9 ) Money Market 2.0 (3.4 ) (1.4 ) Time 0.1 (1.2 ) (1.1 ) Total Interest-Bearing Deposits 2.0 (6.4 ) (4.4 ) Other Short-Term Borrowings (1.1 ) (1.1 ) (2.2 ) Other Interest-Bearing Liabilities (0.1 ) — (0.1 ) Total Change in Interest Expense 0.8 (7.5 ) (6.7 ) Change in Net Interest Income $ (1.5 ) $ 2.4 $ 0.9 __________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 7 Three Months Ended December 31, 2025 Compared to December 31, 2024 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 4.0 $ (2.1 ) $ 1.9 Available-for-Sale Investment Securities Taxable 0.4 1.9 2.3 Held-to-Maturity Investment Securities Taxable (1.1 ) (0.2 ) (1.3 ) Non-Taxable (0.1 ) (0.3 ) (0.4 ) Total Investment Securities (0.8 ) 1.4 0.6 Loans and Leases Commercial and industrial (0.4 ) (2.9 ) (3.3 ) Commercial real estate 4.2 (4.3 ) (0.1 ) Construction (3.1 ) (1.0 ) (4.1 ) Residential: Residential mortgage (1.0 ) 1.2 0.2 Home equity line 0.2 0.5 0.7 Consumer (0.2 ) 1.0 0.8 Lease financing 0.2 (0.3 ) (0.1 ) Total Loans and Leases (0.1 ) (5.8 ) (5.9 ) Other Earning Assets (0.2 ) (0.1 ) (0.3 ) Total Change in Interest Income 2.9 (6.6 ) (3.7 ) Change in Interest Expense: Interest-Bearing Deposits Savings 1.3 (2.4 ) (1.1 ) Money Market 0.8 (5.4 ) (4.6 ) Time — (6.4 ) (6.4 ) Total Interest-Bearing Deposits 2.1 (14.2 ) (12.1 ) Other Short-Term Borrowings (1.4 ) (1.3 ) (2.7 ) Other Interest-Bearing Liabilities (0.1 ) — (0.1 ) Total Change in Interest Expense 0.6 (15.5 ) (14.9 ) Change in Net Interest Income $ 2.3 $ 8.9 $ 11.2 __________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 8 Year Ended December 31, 2025 Compared to December 31, 2024 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 18.9 $ (9.7 ) $ 9.2 Available-for-Sale Investment Securities Taxable (4.3 ) 4.1 (0.2 ) Held-to-Maturity Investment Securities Taxable (4.4 ) — (4.4 ) Non-Taxable (0.2 ) (1.3 ) (1.5 ) Total Investment Securities (8.9 ) 2.8 (6.1 ) Loans Held for Sale (0.1 ) — (0.1 ) Loans and Leases Commercial and industrial 1.2 (15.5 ) (14.3 ) Commercial real estate 10.4 (20.7 ) (10.3 ) Construction (7.2 ) (7.4 ) (14.6 ) Residential: Residential mortgage (4.6 ) 3.8 (0.8 ) Home equity line — 3.4 3.4 Consumer (2.4 ) 6.5 4.1 Lease financing 1.0 (0.2 ) 0.8 Total Loans and Leases (1.6 ) (30.1 ) (31.7 ) Other Earning Assets (1.1 ) (0.3 ) (1.4 ) Total Change in Interest Income 7.2 (37.3 ) (30.1 ) Change in Interest Expense: Interest-Bearing Deposits Savings 4.2 (11.6 ) (7.4 ) Money Market (3.4 ) (23.3 ) (26.7 ) Time 1.2 (23.5 ) (22.3 ) Total Interest-Bearing Deposits 2.0 (58.4 ) (56.4 ) Other Short-Term Borrowings (10.7 ) (1.9 ) (12.6 ) Other Interest-Bearing Liabilities (0.5 ) (0.2 ) (0.7 ) Total Change in Interest Expense (9.2 ) (60.5 ) (69.7 ) Change in Net Interest Income $ 16.4 $ 23.2 $ 39.6 __________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Loans and Leases Table 9 December 31 , September 30 , December 31 , (dollars in thousands) 2025 2025 2024 Commercial and industrial $ 2,171,333 $ 2,027,504 $ 2,247,428 Commercial real estate 4,590,326 4,513,706 4,463,992 Construction 808,275 881,462 918,326 Residential: Residential mortgage 4,096,300 4,077,946 4,168,154 Home equity line 1,178,527 1,170,822 1,151,739 Total residential 5,274,827 5,248,768 5,319,893 Consumer 1,025,838 1,013,663 1,023,969 Lease financing 441,930 444,280 434,650 Total loans and leases $ 14,312,529 $ 14,129,383 $ 14,408,258 Deposits Table 10 December 31 , September 30 , December 31 , (dollars in thousands) 2025 2025 2024 Demand $ 6,547,292 $ 6,782,172 $ 6,975,148 Savings 6,308,873 6,691,136 6,021,364 Money Market 4,289,370 3,874,614 4,027,334 Time 3,370,133 3,381,635 3,298,370 Total Deposits $ 20,515,668 $ 20,729,557 $ 20,322,216 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11 December 31 , September 30 , December 31 , (dollars in thousands) 2025 2025 2024 Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 8,805 $ 1,084 $ 329 Commercial real estate 3,007 3,089 411 Construction 1,788 904 — Lease financing 734 169 — Total Commercial Loans 14,334 5,246 740 Residential Loans: Residential mortgage 16,423 16,702 12,768 Home equity line 10,271 8,385 7,171 Total Residential Loans 26,694 25,087 19,939 Consumer — 600 — Total Non-Accrual Loans and Leases 41,028 30,933 20,679 Total Non-Performing Assets $ 41,028 $ 30,933 $ 20,679 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 318 $ 633 $ 1,432 Construction — 2,063 536 Total Commercial Loans 318 2,696 1,968 Residential mortgage 55 627 1,317 Consumer 2,984 2,566 2,734 Total Accruing Loans and Leases Past Due 90 Days or More $ 3,357 $ 5,889 $ 6,019 Total Loans and Leases $ 14,312,529 $ 14,129,383 $ 14,408,258 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12 For the Three Months Ended For the Year Ended December 31 , September 30 , December 31 , December 31 , December 31 , (dollars in thousands) 2025 2025 2024 2025 2024 Balance at Beginning of Period $ 201,466 $ 201,172 $ 197,397 $ 193,240 $ 192,138 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (1,478 ) (1,106 ) (851 ) (4,731 ) (3,615 ) Commercial real estate — — — — (400 ) Lease financing — (580 ) — (662 ) — Total Commercial Loans (1,478 ) (1,686 ) (851 ) (5,393 ) (4,015 ) Home equity line — — — (30 ) — Consumer (5,186 ) (4,719 ) (4,774 ) (19,473 ) (18,002 ) Total Loans and Leases Charged-Off (6,664 ) (6,405 ) (5,625 ) (24,896 ) (22,017 ) Recoveries on Loans and Leases Previously Charged-Off Commercial Loans: Commercial and industrial 193 410 298 1,202 919 Commercial real estate — — — 251 — Total Commercial Loans 193 410 298 1,453 919 Residential Loans: Residential mortgage 14 14 30 157 119 Home equity line 27 26 32 149 274 Total Residential Loans 41 40 62 306 393 Consumer 1,429 1,749 1,858 6,862 7,057 Total Recoveries on Loans and Leases Previously Charged-Off 1,663 2,199 2,218 8,621 8,369 Net Loans and Leases Charged-Off (5,001 ) (4,206 ) (3,407 ) (16,275 ) (13,648 ) Provision (Benefit) for Credit Losses 7,700 4,500 (750 ) 27,200 14,750 Balance at End of Period $ 204,165 $ 201,466 $ 193,240 $ 204,165 $ 193,240 Components: Allowance for Credit Losses $ 168,468 $ 165,269 $ 160,393 $ 168,468 $ 160,393 Reserve for Unfunded Commitments 35,697 36,197 32,847 35,697 32,847 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 204,165 $ 201,466 $ 193,240 $ 204,165 $ 193,240 Average Loans and Leases Outstanding $ 14,251,470 $ 14,209,282 $ 14,276,107 $ 14,264,604 $ 14,312,759 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.14 % 0.12 % 0.09 % 0.11 % 0.10 % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.18 % 1.17 % 1.11 % 1.18 % 1.11 % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 4.11x 5.34x 7.76x 4.11x 7.76x __________________________ (1) Annualized for the three months ended December 31, 2025 , September 30, 2025 and December 31, 2024 . Loans and Leases by Year of Origination and Credit Quality Indicator Table 13 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 321,132 $ 120,082 $ 61,358 $ 99,174 $ 150,013 $ 228,890 $ 1,007,162 $ 14,182 $ 2,001,993 Special Mention 3,790 825 1,900 1,940 341 841 3,819 — 13,456 Substandard 746 — 368 7,827 19 20,435 38,466 — 67,861 Other (1) 19,067 9,027 5,046 3,560 1,081 1,164 49,078 — 88,023 Total Commercial and Industrial 344,735 129,934 68,672 112,501 151,454 251,330 1,098,525 14,182 2,171,333 Current period gross charge-offs 1 170 775 547 407 2,800 31 — 4,731 Commercial Real Estate Risk rating: Pass 732,672 288,924 389,773 735,412 566,285 1,525,374 115,640 6,881 4,360,961 Special Mention — 681 37,667 43,819 41,393 21,317 1,314 — 146,191 Substandard — 5,547 529 59,126 989 16,109 751 — 83,051 Other (1) — — — — — 123 — — 123 Total Commercial Real Estate 732,672 295,152 427,969 838,357 608,667 1,562,923 117,705 6,881 4,590,326 Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 82,330 218,505 106,890 192,608 77,380 47,078 26,917 — 751,708 Special Mention — — — 27,972 — 121 — — 28,093 Substandard — — — — — 904 — — 904 Other (1) 7,773 8,300 4,760 4,019 160 1,872 686 — 27,570 Total Construction 90,103 226,805 111,650 224,599 77,540 49,975 27,603 — 808,275 Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 122,978 80,669 89,475 43,015 9,087 91,109 — — 436,333 Special Mention — — 556 42 — — — — 598 Substandard — 4,379 408 212 — — — — 4,999 Total Lease Financing 122,978 85,048 90,439 43,269 9,087 91,109 — — 441,930 Current period gross charge-offs — 662 — — — — — — 662 Total Commercial Lending $ 1,290,488 $ 736,939 $ 698,730 $ 1,218,726 $ 846,748 $ 1,955,337 $ 1,243,833 $ 21,063 $ 8,011,864 Current period gross charge-offs $ 1 $ 832 $ 775 $ 547 $ 407 $ 2,800 $ 31 $ — $ 5,393 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 196,591 $ 146,779 $ 188,885 $ 455,130 $ 881,320 $ 1,479,533 $ — $ — $ 3,348,238 680 - 739 21,211 19,044 26,493 57,219 94,557 171,825 — — 390,349 620 - 679 7,054 2,100 5,535 24,857 23,888 51,817 — — 115,251 550 - 619 — 721 1,188 3,126 6,334 14,464 — — 25,833 Less than 550 — 1,968 887 3,000 4,653 9,415 — — 19,923 No Score(3) 8,082 5,093 5,384 15,829 9,523 44,549 — — 88,460 Other(2) 20,152 7,771 11,625 13,530 13,640 32,144 9,384 — 108,246 Total Residential Mortgage 253,090 183,476 239,997 572,691 1,033,915 1,803,747 9,384 — 4,096,300 Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 939,884 1,068 940,952 680 - 739 — — — — — — 171,306 1,520 172,826 620 - 679 — — — — — — 40,928 637 41,565 550 - 619 — — — — — — 13,464 843 14,307 Less than 550 — — — — — — 8,069 71 8,140 No Score(3) — — — — — — 737 — 737 Total Home Equity Line — — — — — — 1,174,388 4,139 1,178,527 Current period gross charge-offs — — — — — — 30 — 30 Total Residential Lending $ 253,090 $ 183,476 $ 239,997 $ 572,691 $ 1,033,915 $ 1,803,747 $ 1,183,772 $ 4,139 $ 5,274,827 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 30 $ — $ 30 Consumer Lending FICO: 740 and greater 113,519 65,981 42,560 49,118 20,240 4,462 102,761 110 398,751 680 - 739 86,088 47,861 28,552 24,684 10,429 2,974 87,662 529 288,779 620 - 679 44,816 20,455 11,809 11,804 5,695 2,379 50,406 963 148,327 550 - 619 9,253 8,439 6,414 7,503 3,497 2,004 16,764 832 54,706 Less than 550 2,491 4,263 3,213 3,809 1,948 1,287 5,745 498 23,254 No Score(3) 1,775 5 40 5 — 22 36,868 156 38,871 Other(2) 4,536 — — — 547 1,009 67,058 — 73,150 Total Consumer Lending $ 262,478 $ 147,004 $ 92,588 $ 96,923 $ 42,356 $ 14,137 $ 367,264 $ 3,088 $ 1,025,838 Current period gross charge-offs $ 802 $ 2,494 $ 1,693 $ 1,873 $ 947 $ 2,425 $ 8,367 $ 872 $ 19,473 Total Loans and Leases $ 1,806,056 $ 1,067,419 $ 1,031,315 $ 1,888,340 $ 1,923,019 $ 3,773,221 $ 2,794,869 $ 28,290 $ 14,312,529 Current period gross charge-offs $ 803 $ 3,326 $ 2,468 $ 2,420 $ 1,354 $ 5,225 $ 8,428 $ 872 $ 24,896 __________________________ (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of December 31, 2025 , the majority of the loans in this population were current. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of December 31, 2025 , the majority of the loans in this population were current. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 14 For the Three Months Ended For the Year Ended December 31 , September 30 , December 31 , December 31 , (dollars in thousands) 2025 2025 2024 2025 2024 Income Statement Data: Net income $ 69,931 $ 73,840 $ 52,496 $ 276,266 $ 230,129 Average total stockholders' equity $ 2,756,241 $ 2,710,273 $ 2,629,600 $ 2,693,446 $ 2,557,215 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,760,749 $ 1,714,781 $ 1,634,108 $ 1,697,954 $ 1,561,723 Average total assets $ 23,925,000 $ 23,993,685 $ 23,795,735 $ 23,917,443 $ 23,996,723 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,929,508 $ 22,998,193 $ 22,800,243 $ 22,921,951 $ 23,001,231 Return on average total stockholders' equity(1) 10.07 % 10.81 % 7.94 % 10.26 % 9.00 % Return on average tangible stockholders' equity (non-GAAP)(1) 15.76 % 17.08 % 12.78 % 16.27 % 14.74 % Return on average total assets(1) 1.16 % 1.22 % 0.88 % 1.16 % 0.96 % Return on average tangible assets (non-GAAP)(1) 1.21 % 1.27 % 0.92 % 1.21 % 1.00 % As of As of As of December 31 , September 30 , December 31 , (dollars in thousands, except per share amounts) 2025 2025 2024 Balance Sheet Data: Total stockholders' equity $ 2,769,365 $ 2,733,921 $ 2,617,486 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,773,873 $ 1,738,429 $ 1,621,994 Total assets $ 23,955,252 $ 24,098,728 $ 23,828,186 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 22,959,760 $ 23,103,236 $ 22,832,694 Shares outstanding 122,689,256 123,719,585 126,422,898 Total stockholders' equity to total assets 11.56 % 11.34 % 10.98 % Tangible stockholders' equity to tangible assets (non-GAAP) 7.73 % 7.52 % 7.10 % Book value per share $ 22.57 $ 22.10 $ 20.70 Tangible book value per share (non-GAAP) $ 14.46 $ 14.05 $ 12.83 __________________________ (1) Annualized for the three months ended December 31, 2025 , September 30, 2025 and December 31, 2024 . Source: First Hawaiian, Inc.

View stock analysis, news, and events for First Hawaiian, Inc.