Hawaiian banking company First Hawaiian (NASDAQ: FHB) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 7.8% year on year to $226.4 million. Its GAAP profit of $0.59 per share was 14% above analysts’ consensus estimates.
Is now the time to buy First Hawaiian Bank? Find out by accessing our full research report, it’s free for active Edge members.
First Hawaiian Bank (FHB) Q3 CY2025 Highlights:
- Net Interest Income: $169.3 million vs analyst estimates of $166.6 million (8.1% year-on-year growth, 1.7% beat)
- Net Interest Margin: 3.2% vs analyst estimates of 3.1% (5.2 basis point beat)
- Revenue: $226.4 million vs analyst estimates of $218.2 million (7.8% year-on-year growth, 3.7% beat)
- Efficiency Ratio: 55.3% vs analyst estimates of 58.3% (297 basis point beat)
- EPS (GAAP): $0.59 vs analyst estimates of $0.52 (14% beat)
- Tangible Book Value per Share: $14.05 vs analyst estimates of $13.95 (8.7% year-on-year growth, 0.7% beat)
- Market Capitalization: $2.95 billion
“I’m pleased to report that the third quarter was another period of market-leading performance for First Hawaiian Bank,” said Bob Harrison, Chairman, President, and CEO.
Company Overview
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.
Sales Growth
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. Over the last five years, First Hawaiian Bank grew its revenue at a tepid 2.9% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Hawaiian Bank’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
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 7.8%, and its $226.4 million of revenue exceeded Wall Street’s estimates by 3.7%.
Net interest income made up 75.8% of the company’s total revenue during the last five years, meaning lending operations are First Hawaiian Bank’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
First Hawaiian Bank’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 15% annually over the last two years from $10.62 to $14.05 per share.
Over the next 12 months, Consensus estimates call for First Hawaiian Bank’s TBVPS to grow by 6.9% to $15.02, mediocre growth rate.
Key Takeaways from First Hawaiian Bank’s Q3 Results
We enjoyed seeing First Hawaiian Bank beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 2.6% to $24.31 immediately following the results.
Sure, First Hawaiian Bank had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
