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Hawaiian banking company First Hawaiian (NASDAQ:FHB) reported Q2 CY2025 results topping the market’s revenue expectations , with sales up 6.3% year on year to $217.5 million. Its GAAP profit of $0.58 per share was 18.5% above analysts’ consensus estimates.
Is now the time to buy First Hawaiian Bank? Find out in our full research report.
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Net Interest Income: $163.6 million vs analyst estimates of $163.2 million (7% year-on-year growth, in line)
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Net Interest Margin: 3.1% vs analyst estimates of 3.1% (19 basis point year-on-year increase, in line)
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Revenue: $217.5 million vs analyst estimates of $213 million (6.3% year-on-year growth, 2.1% beat)
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Efficiency Ratio: 57.2% vs analyst estimates of 58.7% (1.5 percentage point beat)
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EPS (GAAP): $0.58 vs analyst estimates of $0.49 (18.5% beat)
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Market Capitalization: $3.17 billion
“I’m happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter,” said Bob Harrison, Chairman, President, and CEO.
Dating back to 1858 as Hawaii’s oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ:FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Regrettably, First Hawaiian Bank’s revenue grew at a tepid 2.2% compounded annual growth rate over the last five years. This was below our standards and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First Hawaiian Bank’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.5% annually.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Hawaiian Bank reported year-on-year revenue growth of 6.3%, and its $217.5 million of revenue exceeded Wall Street’s estimates by 2.1%.
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