First Hawaiian Inc. concluded its 2025 fiscal year with a strong emphasis on shareholder returns, supported by solid financial performance. The bank’s management has signaled robust confidence in its financial position, not only by maintaining a reliable dividend but also through a substantial expansion of its share repurchase authorization. This focus on capital distribution comes amid a period of operational stability, though questions linger regarding deposit trends.
Financial Performance and Shareholder Returns
The company reported a fourth-quarter profit of $69.9 million, equating to $0.56 per share. A key announcement was the authorization of a new $250 million share buyback program, more than doubling the previous $100.25 million authorization. Shareholders will also receive a quarterly cash dividend of $0.26 per share, payable on February 27, 2026, to those of record as of February 13.
For the full year 2025, the net interest income reached $663.74 million. In the final quarter, this metric came in at $170.3 million, aided by a net interest margin that improved slightly by two basis points to 3.21%.
Operational Highlights and Credit Metrics
Operational results for Q4 remained steady. Total loan volume grew to $14.3 billion by year-end. However, total deposits saw a modest decline, standing at $20.5 billion at the period’s close—a decrease of approximately $214 million from the prior quarter.
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Credit quality metrics appeared stable. The provision for credit losses in Q4 was $7.7 million, while the total allowance for credit losses now covers 1.18% of the total loan portfolio.
Guidance for 2026 and Economic Backdrop
Looking ahead to the 2026 fiscal year, management has provided specific forecasts. Loan growth is projected to be in the range of 3% to 4%. The net interest margin is expected to settle between 3.16% and 3.18%. Non-interest income is anticipated to be around $220 million, with an estimated expense base of approximately $520 million.
The economic environment in First Hawaiian’s core market remains a source of strength. Hawaii’s unemployment rate sits at a low 2.2%, providing a stable foundation for the bank’s regional lending business.
The significantly enlarged buyback program underscores a committed strategy to return capital to investors, positioning shareholder returns as a central pillar of the bank’s near-term financial planning.
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