Hawaiian banking company First Hawaiian (NASDAQ: FHB) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 4.4% year on year to $220.3 million. Its GAAP profit of $0.55 per share was 2.8% above analysts’ consensus estimates.
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First Hawaiian Bank (FHB) Q1 CY2026 Highlights:
- Net Interest Income: $167.5 million vs analyst estimates of $166.3 million (4.4% year-on-year growth, 0.8% beat)
- Net Interest Margin: 3.2% vs analyst estimates of 3.2% (in line)
- Revenue: $220.3 million vs analyst estimates of $220.4 million (4.4% year-on-year growth, in line)
- Efficiency Ratio: 57.8% vs analyst estimates of 58.3% (53 basis point beat)
- EPS (GAAP): $0.55 vs analyst estimates of $0.54 (2.8% beat)
- Tangible Book Value per Share: $14.57 vs analyst estimates of $14.62 (10.8% year-on-year growth, in line)
- Market Capitalization: $3.31 billion
“I’m pleased to report that First Hawaiian started 2026 with a strong first 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
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 sluggish 4.2% compounded annual growth rate. This fell short of our benchmark for the banking sector and is a tough 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 4.3% 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 4.4% year on year, and its $220.3 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.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. 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 grew at a sluggish 2.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.8% annually over the last two years from $11.88 to $14.57 per share.
Over the next 12 months, Consensus estimates call for First Hawaiian Bank’s TBVPS to grow by 8.9% to $15.86, paltry growth rate.
Key Takeaways from First Hawaiian Bank’s Q1 Results
It was good to see First Hawaiian Bank narrowly top analysts’ net interest income expectations this quarter. On the other hand, its EPS slightly beat. Overall, this was a softer quarter. The stock remained flat at $26.69 immediately after reporting.
Should you buy the stock or not? 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).
