
Hawaiian banking company First Hawaiian (NASDAQ: FHB) reported Q3 2026 results exceeding the market’s revenue expectations, with revenue up 1.7% year on year to $230.2 million. Its GAAP profit of $0.52 per share was 10.2% below analysts’ consensus estimates.
For more on First Hawaiian Bank, read our free full research report.
First Hawaiian Bank (FHB) Q3 2026 highlights:
- Net Interest Income: $174.1 million vs analysts’ consensus estimates of $174.3 million (2.8% year-on-year growth, in line)
- Net Interest Margin: 3.3% vs analysts’ consensus estimates of 3.3% (in line)
- Revenue: $230.2 million vs analysts’ consensus estimates of $228.7 million (1.7% year-on-year growth, 0.7% beat)
- Efficiency Ratio: 69.2% vs analysts’ consensus estimates of 56.6% (1,259.7 basis point miss)
- EPS (GAAP): $0.52 vs analysts’ consensus estimates of $0.58 (10.2% miss)
- Tangible Book Value per Share: $14.97 vs analysts’ consensus estimates of $15.32 (6.5% year-on-year growth, 2.3% miss)
- Market Capitalization: $3.18 billion
“I’m pleased with the solid earnings we delivered this quarter and the continued trust our customers place in us,” said Bob Harrison, Chairman, President and Chief Executive Officer. “Our deposit growth in a competitive market reflects the strength of those relationships, and our balance sheet is well positioned to benefit from rising interest rates. As we prepare for the Tri Counties Bank acquisition, we’re focused on building on that foundation and the growth opportunities ahead.”
Revenue growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management and trading operations provide additional income. Unfortunately, First Hawaiian Bank’s 4.4% annualized revenue growth over the last five years was sluggish. This was below our standard for the banking sector and is a poor baseline 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 annualized revenue growth of 5% 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 because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Hawaiian Bank reported modest year-on-year revenue growth of 1.7% but beat Wall Street’s consensus estimates by 0.7%.
Net interest income made up 75.9% 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.
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.
Because of this, tangible book value per share (TBVPS) is the key performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Acquisition effects or accounting flexibility around loan provisions can cloud EPS, and TBVPS resists manipulation through financial engineering.
First Hawaiian Bank’s TBVPS grew at a sluggish 2.3% annual rate over the last five years. However, TBVPS growth has accelerated recently, growing by 7.6% annually over the last two years from $12.92 to $14.97 per share.

Over the next 12 months, consensus estimates call for First Hawaiian Bank’s TBVPS to grow by 6.7% to $15.98, a weak growth rate.
Key takeaways from First Hawaiian Bank’s Q3 results
First Hawaiian Bank’s narrow revenue beat was a bright spot in an otherwise softer quarter: EPS missed consensus estimates, and tangible book value per share also fell short of Wall Street’s consensus. Shares fell 4.8% to $24.89 immediately after the release.
First Hawaiian Bank’s latest quarter was disappointing. One earnings report doesn’t define a company’s quality, though, so it’s worth examining whether the stock is a buy at the current price. When making that decision, it’s important to consider its valuation, business quality and latest quarterly results. Read the full research report here (it’s free).
