First Hawaiian Reports 24% Net Income Growth, Executes $25M Buybacks

In 2025, First Hawaiian, Inc. (FHB) is demonstrating strategic financial management by balancing shareholder returns with capital resilience amid rising interest rates. The bank's $25 million share repurchase in Q2, supported by a strong CET1 ratio and improving net interest margin, reflects a disciplined capital allocation strategy that aims to enhance earnings per share while maintaining investment capacity. FHB reported a 23.6% sequential increase in net income to $73.2 million, benefiting from expanded net interest margins, rising noninterest income, improved credit quality, and a lower effective tax rate following California's tax code changes. Operational efficiency also improved, with a reduced efficiency ratio signaling effective cost control during a challenging banking environment. Institutional investor activity in FHB stock has seen minor adjustments, with some firms slightly reducing their holdings and others increasing positions, while the overwhelming majority of shares remain held by institutional investors. The overall performance and strategic positioning make FHB an attractive option for value investors seeking exposure to a high-quality regional bank navigating economic headwinds.