Hawaiian banking company First Hawaiian (NASDAQ: FHB) met Wall Streets revenue expectations in Q4 CY2025, with sales up 5.4% year on year to $225.9 million. Its GAAP profit of $0.56 per share was 2% above analysts’ consensus estimates.
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First Hawaiian Bank (FHB) Q4 CY2025 Highlights:
- Net Interest Income: $170.3 million vs analyst estimates of $171 million (7.3% year-on-year growth, in line)
- Net Interest Margin: 3.2% vs analyst estimates of 3.2% (3.5 basis point beat)
- Revenue: $225.9 million vs analyst estimates of $225 million (5.4% year-on-year growth, in line)
- Efficiency Ratio: 55.1% vs analyst estimates of 56.8% (166 basis point beat)
- EPS (GAAP): $0.56 vs analyst estimates of $0.55 (2% beat)
- Tangible Book Value per Share: $14.46 vs analyst estimates of $14.30 (13.6% year-on-year growth, 1.1% beat)
- Market Capitalization: $3.41 billion
“I’m happy to report that First Hawaiian finished 2025 with another strong quarter,” 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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Regrettably, First Hawaiian Bank’s revenue grew at a sluggish 3.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a rough starting point 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 annualized revenue growth of 3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
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 grew its revenue by 5.4% year on year, and its $225.9 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 75.6% 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)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
First Hawaiian Bank’s TBVPS grew at a sluggish 1.6% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 11.7% annually over the last two years from $11.60 to $14.46 per share.
Over the next 12 months, Consensus estimates call for First Hawaiian Bank’s TBVPS to grow by 8.5% to $15.69, paltry growth rate.
Key Takeaways from First Hawaiian Bank’s Q4 Results
It was good to see First Hawaiian Bank narrowly top analysts’ EPS and tangible book value per share expectations this quarter. On the other hand, its net interest income was just in line with Wall Street’s estimates. Overall, this was still a decentquarter. The stock remained flat at $27.57 immediately following the results.
Is First Hawaiian Bank an attractive investment opportunity right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
