The sharp increase in credit costs and charge-offs, particularly the $12.5M CRE charge-off, signals potential asset quality deterioration that may pressure the stock near-term. Monitor the Q4 provision and charge-off trajectory, and any updates on the Tri Counties Bank acquisition integration costs.
Price Chart
Executive Summary
First Hawaiian reported Q3 2026 EPS of $0.52, missing consensus of $0.59 by 11.9%, and revenue of $228.2M (net interest income + noninterest income) vs. $228.9M consensus. The miss was driven by a $20.3M provision for credit losses (vs. $5.6M prior quarter), including a $12.5M partial charge-off on a single CRE loan, and elevated noninterest expense from $6.7M merger costs and a $24.3M tax settlement charge. Net interest margin improved 5 bps to 3.30%, but asset quality deteriorated with net charge-offs rising to 0.60% from 0.11%.
Key Financial Metrics
Key Facts
- EPS $0.52 vs. consensus $0.59 (-11.9% miss)
- Net income $63.7M vs. $73.4M prior quarter (-13.2% QoQ)
- Provision for credit losses $20.3M vs. $5.6M prior quarter (+263%)
- Net charge-offs $21.9M (0.60% annualized) vs. $4.1M (0.11%) prior quarter
- Noninterest expense $160.0M includes $6.7M merger costs and $24.3M tax settlement charge
- Net interest margin expanded 5 bps to 3.30%
- Total deposits increased $50.4M to $20.2B
- Quarterly dividend maintained at $0.26 per share
- No share repurchases in Q3
Financial Impact
EPS miss of 11.9% vs consensus; provision spike of $14.7M QoQ; net charge-offs up 5.4x QoQ
Risk Factors
- Further credit deterioration in CRE portfolio could drive additional provisions
- Merger-related costs for Tri Counties Bank acquisition may pressure near-term earnings
- Elevated charge-off ratio (0.60%) may indicate broader credit cycle stress
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3387218 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | 8-K | $25.61 | awaiting T+60 | — | $25.34 (+1.05%) |
Oct 23, 2026 2d ago | Press Release | $25.61 | awaiting T+60 | — | $25.34 (+1.05%) |
Oct 2, 2026 23d ago | Press Release | $25.04 | awaiting T+60 | — | $25.34 (+1.20%) |
Sep 17, 2026 5w ago | EFFECT | $25.81 | awaiting T+60 | — | $25.34 (−1.82%) |
Jul 24, 2026 13w ago | 8-K | $28.11 $24.94 | ▼ −11.28% | ▼ −15.01% | $25.34 (−9.85%) |
Jul 24, 2026 13w ago | Press Release | $28.11 $24.94 | ▼ −11.28% | ▼ −15.01% | $25.34 (−9.85%) |
Jul 13, 2026 15w ago | 8-K | $29.14 $25.00 | ▼ −14.21% | ▼ −18.20% | $25.34 (−13.04%) |
Jul 12, 2026 15w ago | Press Release | $29.14 $25.00 | ▼ −14.21% | ▼ −18.20% | $25.34 (−13.04%) |
Apr 24, 2026 26w ago | 8-K | $26.41 $29.06 | ▼ −10.03% | ▼ −4.95% | $25.34 (+4.05%) |
Apr 24, 2026 26w ago | Press Release | $26.41 $29.06 | ▲ +10.03% | ▲ +4.95% | $25.34 (−4.05%) |
US Market Status
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