First Hawaiian, Inc. (FHB) SEC Filings & Earnings Calls

Credit quality deterioration: elevated provision and charge-offs driven by CRE loan

“recorded a $20.3 million provision for credit losses, driven by a $12.5 million partial charge-off related to a single CRE loan and other CRE loan downgrades” · word for word

Merger-related costs and tax settlement distort earnings

“Results include a $24.3 million noninterest expense and a $31.0 million income tax benefit from an agreement to settle tax liabilities; merger-related costs $6.7 million”

Deposit Outflow Risk

“Total deposits were $20.2 billion as of June 30, 2026, a decrease of a $361.5 million or 2% from December 31, 2025.” · word for word

Hawaii Economic Concentration

“The loan and lease portfolio is principally located in Hawaii and, to a lesser extent, on the U.S. Mainland, Guam and Saipan.” · word for word

Interest Rate Sensitivity

“The yield on our loan and lease portfolio was 5.30% for the three months ended June 30, 2026, a decrease of 14 basis points as compared to the same period in 2025, primarily due to decreases in yields from our adjustable-rate commercial real estate and commercial and industrial loans, which are typically based on the SOFR.” · word for word

Merger Integration Risk

“On July 12, 2026, First Hawaiian, Inc. and TriCo Bancshares (“TriCo”) entered into a definitive agreement (the “Merger Agreement”) under which, on the terms and conditions set forth therein, the Company will acquire TriCo in an all-stock transaction.” · word for word

Deposit outflow may pressure funding and NIM if trend continues

“Total deposits decreased $623.2 million versus prior quarter” · word for word

Provision for credit losses increased slightly, indicating potential credit quality concerns

“Recorded a $5.6 million provision for credit losses vs $5.0 million prior quarter”

Execution risk from regulatory approvals and integration; potential dilution from stock issuance.

“Conditions include regulatory approvals from Fed, FDIC, state agencies; stockholder votes; no material adverse change clause.”

Transaction completion risk: subject to regulatory approvals, shareholder approvals, and other conditions

“Failure to obtain necessary regulatory approvals, stockholder or shareholder approvals, or to satisfy other conditions”

Integration risk: potential challenges in combining operations, systems, and cultures

“Anticipated benefits may not be realized due to integration problems”

Dilution risk: issuance of additional shares in connection with the transaction

“Dilution caused by FHI's issuance of additional shares of its capital stock” · word for word

Geographic concentration in Hawaii

“Hawaii’s economy continues to remain resilient in an environment facing challenges, including from: high consumer prices and housing affordability, both of which are expected to continue with the gradual pass-through of tariffs and the ongoing conflict with Iran; a steady out-migration of its population; adverse weather events, such as the Kona Low storms, a” · word for word

Interest rate sensitivity

“The effect of changes in interest rates on our business, including our net interest income, net interest margin, the fair value of our investment securities, and our mortgage loan originations, mortgage servicing rights and mortgage loans held for sale.” · word for word

Credit quality deterioration

“The possibility of a deterioration in credit quality in our portfolio; the possibility we might underestimate the credit losses inherent in our loan and lease portfolio.” · word for word

Unrealized losses on investment securities

“Gross unrealized losses in our investment securities portfolio were $598.8 million and $521.9 million as of March 31, 2026 and December 31, 2025, respectively.” · word for word

NIM compression of 2 bps signals modest margin pressure

“Net interest margin declined 2 basis points to 3.19%” · word for word

Provision for credit losses of $5M indicates credit cost

“Recorded a $5.0 million provision for credit losses” · word for word

Geographic concentration in Hawaii

“Our business may be adversely affected by conditions in the financial markets and economic conditions generally and in Hawaii, Guam and Saipan in particular.” · word for word

Commercial real estate exposure

“Commercial real estate markets have been particularly impacted by a reduced demand for office space driven by the implications of hybrid work arrangements.” · word for word

Interest rate sensitivity

“Our business is subject to interest rate risk and fluctuations in interest rates may adversely affect our earnings.” · word for word

Deposit outflow risk

“Loss of deposits could increase our funding costs.” · word for word

Goodwill impairment risk

“Impairment of goodwill may adversely impact future results of operations.” · word for word

Loss of senior leadership in wealth management could impact client relationships and strategic direction.

“Retirement of Vice Chair, Wealth Management Group.”

Deposit outflow and credit loss provision increase.

“Total deposits decreased $213.9 million versus prior quarter; provision for credit losses increased to $7.7M from $4.5M.” · word for word

Geographic concentration in Hawaii

“the geographic concentration of our business, current and future market and economic conditions generally or in Hawaii, Guam and Saipan in particular, including inflationary pressures and interest rate environment” · word for word

Housing affordability and tariff pass-through

“the State continues to endure high consumer prices and housing affordability challenges, which are expected to continue with the gradual pass-through of tariffs” · word for word

U.S. federal government shutdown impact

“Since October 1, 2025, the U.S. federal government has been in a shutdown. An extended shutdown may lead to the government curtailing certain government spending and operations and could affect various consumers and sectors in Hawaii dependent on federal funding.” · word for word

Loan portfolio contraction of $222.5M QoQ may indicate weak loan demand or credit tightening.

“Total loans and leases decreased $222.5 million versus prior quarter” · word for word

Net charge-offs increased to $4.2M (0.12% annualized) from $3.3M (0.09%) in prior quarter, indicating slight credit deterioration.

“Net charge-offs were $4.2 million, or 0.12% of average loans and leases on an annualized basis... compared to net charge-offs of $3.3 million, or 0.09%” · word for word