First Hawaiian third-quarter net income falls to $63.7 million from $73.8 million a year earlier

First Hawaiian, Inc. (FHB) reported third-quarter 2026 net income of $63.7 million, or $0.52 per diluted share, the company said Friday in a filing covering the quarter ended Sept. 30.

The result compares with net income of $73.8 million, or $0.59 per diluted share, a year earlier, and $73.4 million in the June quarter.

The quarter included a $31.0 million income tax benefit from an agreement to settle tax liabilities tied to the 2016 corporate reorganization. The company also recorded $24.3 million of noninterest expense from the same agreement.

Here's how the company did:

• Diluted earnings per share: $0.52, vs. $0.59 a year earlier
• Net income: $63.7 million, vs. $73.8 million a year earlier
• Net interest income: $174.1 million, vs. $169.3 million a year earlier
• Noninterest income: $56.1 million, vs. $57.1 million a year earlier
• Noninterest expense: $160.0 million, vs. $125.7 million a year earlier

The release does not report a total revenue figure, so the bullets above use the company's reported net interest income and noninterest income.

"I'm pleased with the solid earnings we delivered this quarter and the continued trust our customers place in us," Chairman, President and Chief Executive Officer Bob Harrison said. "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."

Net interest income was $174.1 million, an increase of $3.1 million from $171.0 million in the June quarter.

The net interest margin was 3.30%, up 5 basis points from 3.25% in the June quarter and from 3.19% a year earlier.

Noninterest income was $56.1 million, $4.2 million lower than $60.3 million in the June quarter.

Noninterest expense was $160.0 million, up $29.6 million from $130.4 million in the June quarter. The figure included $6.7 million of merger-related costs and the $24.3 million charge from the tax settlement agreement.

The efficiency ratio was 69.2%, compared with 56.2% in the June quarter and 55.3% a year earlier.

The effective tax rate was negative 27.8%, against 22.9% in the June quarter. The company said the negative rate was due to the $31.0 million income tax benefit.

The company recorded a $20.3 million provision for credit losses, against $5.6 million in the June quarter and $4.5 million a year earlier. The provision was driven by a $12.5 million partial charge-off on a single commercial real estate loan and other commercial real estate loan downgrades.

Net charge-offs were $21.9 million, or 0.60% of average loans and leases on an annualized basis, compared with $4.1 million, or 0.11%, in the June quarter.

Total non-performing assets were $46.0 million, or 0.32% of total loans and leases and other real estate owned, up from $39.5 million at June 30 and $30.9 million a year earlier.

Total loans and leases were $14.5 billion, a decrease of $115.1 million from $14.6 billion at June 30. Total deposits increased $50.4 million to $20.2 billion.

Total stockholders' equity was $2.8 billion at Sept. 30, unchanged from June 30. The tier 1 leverage ratio was 9.61%, up from 9.46%, and the common equity tier 1 capital ratio was 13.50%, up from 13.27%.

The company did not repurchase any shares in the third quarter.

The board declared a quarterly cash dividend of $0.26 per share on Oct. 21, the same rate as a year earlier. The dividend is payable Nov. 27 to stockholders of record at the close of business on Nov. 16.

The company said it is preparing for its Tri Counties Bank acquisition. The release does not give terms or a timetable for that deal.