First Hawaiian (FHB) investor relations material

Executive summary

• Achieved net income of $69.9 million ($0.56 per diluted share) in Q4 2025, with return on average tangible equity at 15.8% for Q4 and 16.3% for the full year.

• Loans and leases grew by $183.1 million, primarily driven by C&I lending; total loans up 5.2% annualized.

• Retail and commercial deposits increased by $233 million, while public deposits declined by $447 million, resulting in a net deposit decrease of $213.9 million.

• Asset quality remained strong, with a low net charge-off rate and stable nonperforming assets.

• Board declared a $0.26 per share dividend and authorized a new $250 million stock repurchase program.

Financial highlights

• Net interest income reached $170.3 million, up $1 million from the prior quarter; net interest margin was 3.21%, up 2 basis points sequentially.

• Noninterest income was $55.6 million; noninterest expense was $125.1 million, with an efficiency ratio of 55.1%.

• Allowance for credit losses increased to $168.5 million, or 1.18% of total loans and leases.

• Tangible book value per share increased to $14.46.

• Return on average assets was 1.16%; return on average tangible common equity was 15.76%.

Outlook and guidance

• Full-year 2026 loan growth expected in the 3%-4% range, led by CRE and C&I loans.

• Full-year NIM projected at 3.16%-3.18%, with headwinds from Fed rate cuts and deposit beta.

• Noninterest income expected to be stable at about $220 million; expenses guided to $520 million for 2026.

• Expense growth normalizing after prior years of cost control from technology investments and vendor consolidation.

• Management remains optimistic, emphasizing continued profitability and growth in loans and deposits.