FHB

HONOLULU, Oct. 23, 2026 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today reported financial results for its quarter ended September 30, 2026. "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." On October 21, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 27, 2026, to stockholders of record at the close of business on November 16, 2026. Third Quarter 2026 Highlights: - Net income of $63.7 million, or $0.52 per diluted share - Total loans and leases decreased $115.1 million to $14.5 billion - Total deposits increased $50.4 million to $20.2 billion - Net interest margin increased 5 basis points to 3.30% - Results include a $24.3 million noninterest expense and a $31.0 million income tax benefit from an agreement to settle tax liabilities resulting from the 2016 corporate reorganization - Merger-related costs in the quarter were $6.7 million - Recorded a $20.3 million provision for credit losses, driven by a $12.5 million partial charge-off related to a single CRE loan and other CRE loan downgrades - Board of Directors declared a quarterly dividend of $0.26 per share Balance Sheet Total assets were $23.8 billion at September 30, 2026 versus $23.6 billion at June 30, 2026. Gross loans and leases were $14.5 billion as of September 30, 2026, a decrease of $115.1 million from $14.6 billion as of June 30, 2026. Total deposits were $20.2 billion as of September 30, 2026 and June 30, 2026. Net Interest Income Net interest income for the third quarter of 2026 was $174.1 million, an increase of $3.1 million compared to $171.0 million for the prior quarter. The net interest margin was 3.30% in the third quarter of 2026, 5 basis points higher than the prior quarter's margin of 3.25%. Provision Expense During the quarter ended September 30, 2026, we recorded a $20.3 million provision for credit losses. In the quarter ended June 30, 2026, we recorded a $5.6 million provision for credit losses. Noninterest Income Noninterest income was $56.1 million in the third quarter of 2026, $4.2 million lower than noninterest income of $60.3 million in the prior quarter. Noninterest Expense Noninterest expense was $160.0 million in the third quarter of 2026, $29.6 million higher compared to noninterest expense of $130.4 million in the prior quarter. Noninterest expense in the third quarter included $6.7 million of merger-related costs and a $24.3 million noninterest expense from an agreement to settle tax liabilities resulting from the 2016 corporate reorganization. The efficiency ratio was 69.2% and 56.2% for the quarters ended September 30, 2026 and June 30, 2026, respectively. Taxes The effective tax rate was -27.8% and 22.9% for the quarters ended September 30, 2026 and June 30, 2026, respectively. The negative effective tax rate in the third quarter was due to a $31.0 million income tax benefit we recorded as a result of the agreement to settle tax liabilities resulting from the 2016 corporate reorganization. Asset Quality The allowance for credit losses was $164.4 million, or 1.14% of total loans and leases, as of September 30, 2026, compared to $168.1 million, or 1.15% of total loans and leases, as of June 30, 2026. The reserve for unfunded commitments was $39.7 million as of September 30, 2026 and $37.7 million as of June 30, 2026. Net charge-offs were $21.9 million, or 0.60% of average loans and leases on an annualized basis, for the quarter ended September 30, 2026, compared to net charge-offs of $4.1 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended June 30, 2026. Total non-performing assets were $46.0 million, or 0.32% of total loans and leases and other real estate owned, on September 30, 2026, compared to total non-performing assets of $39.5 million, or 0.27% of total loans and leases and other real estate owned, on June 30, 2026. Capital Total stockholders' equity was $2.8 billion at September 30, 2026 and June 30, 2026. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.61%, 13.50% and 14.74%, respectively, on September 30, 2026, compared with 9.46%, 13.27% and 14.52%, respectively, on June 30, 2026. The Company did not repurchase any shares in the third quarter. First Hawaiian, Inc. First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii's oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company's website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company's results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register-conf.media-server.com/register/BI4e0abe37ecf34f5d8bdacfb166cade22, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized" and "outlook", or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ("SEC") filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026. Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama, CFA (808) 525-6268 [email protected] | Media Contact: Shari Nishijima (808) 525-6254 [email protected] Financial Highlights | | Table 1 | | For the Three Months Ended | | For the Nine Months Ended | | | September 30, | | June 30, | | September 30, | | September 30, | (dollars in thousands, except per share data) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | Operating Results: | | | | | | | | | | | | | | | | Net interest income | | $ | 174,104 | | $ | 170,993 | | $ | 169,331 | | $ | 512,627 | | $ | 493,440 | Provision for credit losses | | | 20,308 | | | 5,600 | | | 4,500 | | | 30,908 | | | 19,500 | Noninterest income | | | 56,123 | | | 60,281 | | | 57,060 | | | 169,223 | | | 161,495 | Noninterest expense | | | 160,047 | | | 130,445 | | | 125,744 | | | 418,377 | | | 374,243 | Net income | | | 63,730 | | | 73,375 | | | 73,840 | | | 204,889 | | | 206,335 | Basic earnings per share | | | 0.52 | | | 0.60 | | | 0.59 | | | 1.68 | | | 1.65 | Diluted earnings per share | | | 0.52 | | | 0.60 | | | 0.59 | | | 1.67 | | | 1.64 | Dividends declared per share | | | 0.26 | | | 0.26 | | | 0.26 | | | 0.78 | | | 0.78 | Dividend payout ratio | | | 50.00 | % | | 43.33 | % | | 44.07 | % | | 46.71 | % | | 47.56 | % Performance Ratios(1): | | | | | | | | | | | | | | | | Net interest margin | | | 3.30 | % | | 3.25 | % | | 3.19 | % | | 3.25 | % | | 3.13 | % Efficiency ratio | | | 69.18 | % | | 56.17 | % | | 55.29 | % | | 61.08 | % | | 56.88 | % Return on average total assets | | | 1.06 | % | | 1.23 | % | | 1.22 | % | | 1.14 | % | | 1.15 | % Return on average tangible assets (non-GAAP)(2) | | | 1.10 | % | | 1.28 | % | | 1.27 | % | | 1.19 | % | | 1.20 | % Return on average total stockholders' equity | | | 8.88 | % | | 10.52 | % | | 10.81 | % | | 9.75 | % | | 10.32 | % Return on average tangible stockholders' equity (non-GAAP)(2) | | | 13.67 | % | | 16.34 | % | | 17.08 | % | | 15.09 | % | | 16.45 | % Average Balances: | | | | | | | | | | | | | | | | Average loans and leases | | $ | 14,496,740 | | $ | 14,488,213 | | $ | 14,209,282 | | $ | 14,425,550 | | $ | 14,269,030 | Average earning assets | | | 21,128,236 | | | 21,192,973 | | | 21,271,827 | | | 21,217,201 | | | 21,203,245 | Average assets | | | 23,955,273 | | | 23,954,425 | | | 23,993,685 | | | 23,997,190 | | | 23,914,896 | Average deposits | | | 20,408,631 | | | 20,483,307 | | | 20,411,117 | | | 20,504,383 | | | 20,348,609 | Average stockholders' equity | | | 2,845,750 | | | 2,796,857 | | | 2,710,273 | | | 2,810,686 | | | 2,672,284 | Market Value Per Share: | | | | | | | | | | | | | | | | Closing | | | 24.62 | | | 29.30 | | | 24.83 | | | 24.62 | | | 24.83 | High | | | 30.58 | | | 29.63 | | | 26.72 | | | 30.58 | | | 28.28 | Low | | | 24.48 | | | 24.50 | | | 23.48 | | | 23.26 | | | 20.32 | | | | | | | | | | | | | | | | As of | | As of | | As of | | As of | | | September 30, | | June 30, | | December 31, | | September 30, | (dollars in thousands, except per share data) | | 2026 | | 2026 | | 2025 | | 2025 | Balance Sheet Data: | | | | | | | | | | | | | Loans and leases | | $ | 14,462,228 | | $ | 14,577,299 | | $ | 14,312,529 | | $ | 14,129,383 | Total assets | | | 23,764,015 | | | 23,646,049 | | | 23,955,252 | | | 24,098,728 | Total deposits | | | 20,204,570 | | | 20,154,181 | | | 20,515,668 | | | 20,729,557 | Total stockholders' equity | | | 2,817,544 | | | 2,826,028 | | | 2,769,365 | | | 2,733,921 | | | | | | | | | | | | | | Per Share of Common Stock: | | | | | | | | | | | | | Book value | | $ | 23.16 | | $ | 23.22 | | $ | 22.57 | | $ | 22.10 | Tangible book value (non-GAAP)(2) | | | 14.97 | | | 15.04 | | | 14.46 | | | 14.05 | | | | | | | | | | | | | | Asset Quality Ratios: | | | | | | | | | | | | | Non-accrual loans and leases / total loans and leases | | | 0.32 | % | | 0.27 | % | | 0.29 | % | | 0.22 | % Allowance for credit losses for loans and leases / total loans and leases | | | 1.14 | % | | 1.15 | % | | 1.18 | % | | 1.17 | % | | | | | | | | | | | | | Capital Ratios: | | | | | | | | | | | | | Common Equity Tier 1 Capital Ratio | | | 13.50 | % | | 13.27 | % | | 13.17 | % | | 13.24 | % Tier 1 Capital Ratio | | | 13.50 | % | | 13.27 | % | | 13.17 | % | | 13.24 | % Total Capital Ratio | | | 14.74 | % | | 14.52 | % | | 14.42 | % | | 14.49 | % Tier 1 Leverage Ratio | | | 9.61 | % | | 9.46 | % | | 9.27 | % | | 9.16 | % Total stockholders' equity to total assets | | | 11.86 | % | | 11.95 | % | | 11.56 | % | | 11.34 | % Tangible stockholders' equity to tangible assets (non-GAAP)(2) | | | 8.00 | % | | 8.08 | % | | 7.73 | % | | 7.52 | % | | | | | | | | | | | | | Non-Financial Data: | | | | | | | | | | | | | Number of branches | | | 49 | | | 49 | | | 49 | | | 49 | Number of ATMs | | | 272 | | | 274 | | | 273 | | | 275 | Number of Full-Time Equivalent Employees | | | 1,974 | | | 1,995 | | | 1,997 | | | 2,001 | _________________________________________ (1) Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026. (2) Return on average tangible assets, return on average tangible stockholders' equity, tangible book value per share and tangible stockholders' equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders' equity as the ratio of net income to average tangible stockholders' equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders' equity. We compute our tangible book value per share as the ratio of tangible stockholders' equity to outstanding shares. Tangible stockholders' equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders' equity. We compute our tangible stockholders' equity to tangible assets as the ratio of tangible stockholders' equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation. | | | | | | | | | | | | | | | Consolidated Statements of Income | | Table 2 | | For the Three Months Ended | | For the Nine Months Ended | | September 30, | | June 30, | | September 30, | | September 30, (dollars in thousands, except per share amounts) | | 2026 | | | 2026 | | 2025 | | 2026 | | 2025 Interest income | | | | | | | | | | | | | | | Loans and lease financing | | $ | 192,373 | | | $ | 190,727 | | $ | 196,441 | | $ | 569,489 | | $ | 581,936 Available-for-sale investment securities | | | 16,200 | | | | 15,867 | | | 13,470 | | | 46,951 | | | 39,089 Held-to-maturity investment securities | | | 14,856 | | | | 15,121 | | | 15,920 | | | 45,040 | | | 48,866 Other | | | 11,114 | | | | 10,652 | | | 16,744 | | | 35,128 | | | 44,573 Total interest income | | | 234,543 | | | | 232,367 | | | 242,575 | | | 696,608 | | | 714,464 Interest expense | | | | | | | | | | | | | | | Deposits | | | 60,211 | | | | 61,220 | | | 70,851 | | | 183,495 | | | 212,849 Short-term borrowings | | | 1 | | | | — | | | 2,195 | | | 1 | | | 7,421 Other | | | 227 | | | | 154 | | | 198 | | | 485 | | | 754 Total interest expense | | | 60,439 | | | | 61,374 | | | 73,244 | | | 183,981 | | | 221,024 Net interest income | | | 174,104 | | | | 170,993 | | | 169,331 | | | 512,627 | | | 493,440 Provision for credit losses | | | 20,308 | | | | 5,600 | | | 4,500 | | | 30,908 | | | 19,500 Net interest income after provision for credit losses | | | 153,796 | | | | 165,393 | | | 164,831 | | | 481,719 | | | 473,940 Noninterest income | | | | | | | | | | | | | | | Service charges on deposit accounts | | | 8,693 | | | | 8,316 | | | 8,096 | | | 25,165 | | | 23,461 Credit and debit card fees | | | 15,718 | | | | 15,402 | | | 15,850 | | | 46,203 | | | 46,237 Other service charges and fees | | | 15,386 | | | | 14,409 | | | 13,807 | | | 43,579 | | | 39,324 Trust and investment services income | | | 9,146 | | | | 9,074 | | | 9,212 | | | 27,366 | | | 27,736 Bank-owned life insurance | | | 4,748 | | | | 7,069 | | | 6,314 | | | 15,908 | | | 15,409 Investment securities gains, net | | | — | | | | — | | | — | | | — | | | 37 Other | | | 2,432 | | | | 6,011 | | | 3,781 | | | 11,002 | | | 9,291 Total noninterest income | | | 56,123 | | | | 60,281 | | | 57,060 | | | 169,223 | | | 161,495 Noninterest expense | | | | | | | | | | | | | | | Salaries and employee benefits | | | 63,159 | | | | 62,376 | | | 61,533 | | | 189,625 | | | 181,138 Contracted services and professional fees | | | 13,803 | | | | 14,220 | | | 15,785 | | | 41,987 | | | 46,621 Occupancy | | | 7,333 | | | | 7,902 | | | 7,098 | | | 23,051 | | | 23,132 Equipment | | | 15,308 | | | | 14,563 | | | 13,834 | | | 44,652 | | | 41,742 Regulatory assessment and fees | | | 3,112 | | | | 3,417 | | | 3,294 | | | 9,777 | | | 10,876 Advertising and marketing | | | 2,157 | | | | 2,178 | | | 2,033 | | | 6,587 | | | 6,247 Card rewards program | | | 9,125 | | | | 8,403 | | | 8,694 | | | 25,932 | | | 25,019 Merger-related costs | | | 6,672 | | | | 4,182 | | | — | | | 10,854 | | | — Other | | | 39,378 | | | | 13,204 | | | 13,473 | | | 65,912 | | | 39,468 Total noninterest expense | | | 160,047 | | | | 130,445 | | | 125,744 | | | 418,377 | | | 374,243 Income before provision for income taxes | | | 49,872 | | | | 95,229 | | | 96,147 | | | 232,565 | | | 261,192 (Benefit) provision for income taxes | | | (13,858 | ) | | | 21,854 | | | 22,307 | | | 27,676 | | | 54,857 Net income | | $ | 63,730 | | | $ | 73,375 | | $ | 73,840 | | $ | 204,889 | | $ | 206,335 Basic earnings per share | | $ | 0.52 | | | $ | 0.60 | | $ | 0.59 | | $ | 1.68 | | $ | 1.65 Diluted earnings per share | | $ | 0.52 | | | $ | 0.60 | | $ | 0.59 | | $ | 1.67 | | $ | 1.64 Basic weighted-average outstanding shares | | | 121,681,309 | | | | 121,669,238 | | | 124,267,090 | | | 121,933,207 | | | 125,282,792 Diluted weighted-average outstanding shares | | | 122,478,489 | | | | 122,339,836 | | | 124,970,898 | | | 122,716,742 | | | 125,977,271 | | | | | | | | | | | | Consolidated Balance Sheets | | Table 3 | | September 30, | | June 30, | | December 31, | | September 30, (dollars in thousands, except share amount) | | 2026 | | | 2026 | | | 2025 | | | 2025 | Assets | | | | | | | | | | | | Cash and due from banks | | $ | 258,228 | | | $ | 263,762 | | | $ | 228,734 | | | $ | 249,563 | Interest-bearing deposits in other banks | | | 1,071,703 | | | | 748,734 | | | | 1,249,018 | | | | 1,606,080 | Investment securities: | | | | | | | | | | | | Available-for-sale, at fair value (amortized cost: $2,259,070 as of September 30, 2026, $2,275,837 as of June 30, 2026, $2,246,716 as of December 31, 2025 and $2,178,092 as of September 30, 2025) | | | 2,016,945 | | | | 2,094,699 | | | | 2,076,233 | | | | 1,986,717 | Held-to-maturity, at amortized cost (fair value: $2,819,282 as of September 30, 2026, $3,035,475 as of June 30, 2026, $3,188,775 as of December 31, 2025 and $3,209,883 as of September 30, 2025) | | | 3,346,994 | | | | 3,411,684 | | | | 3,533,082 | | | | 3,594,188 | Loans held for sale | | | — | | | | — | | | | 1,370 | | | | 468 | Loans and leases | | | 14,462,228 | | | | 14,577,299 | | | | 14,312,529 | | | | 14,129,383 | Less: allowance for credit losses | | | 164,437 | | | | 168,056 | | | | 168,468 | | | | 165,269 | Net loans and leases | | | 14,297,791 | | | | 14,409,243 | | | | 14,144,061 | | | | 13,964,114 | | | | | | | | | | | | | Premises and equipment, net | | | 304,848 | | | | 304,025 | | | | 303,496 | | | | 302,983 | Accrued interest receivable | | | 75,204 | | | | 76,622 | | | | 77,641 | | | | 77,878 | Bank-owned life insurance | | | 525,898 | | | | 521,137 | | | | 513,182 | | | | 507,950 | Goodwill | | | 995,492 | | | | 995,492 | | | | 995,492 | | | | 995,492 | Mortgage servicing rights | | | 4,164 | | | | 4,302 | | | | 4,638 | | | | 4,728 | Other assets | | | 866,748 | | | | 816,349 | | | | 828,305 | | | | 808,567 | Total assets | | $ | 23,764,015 | | | $ | 23,646,049 | | | $ | 23,955,252 | | | $ | 24,098,728 | Liabilities and Stockholders' Equity | | | | | | | | | | | | Deposits: | | | | | | | | | | | | Interest-bearing | | $ | 13,803,664 | | | $ | 13,706,392 | | | $ | 13,968,376 | | | $ | 13,947,385 | Noninterest-bearing | | | 6,400,906 | | | | 6,447,789 | | | | 6,547,292 | | | | 6,782,172 | Total deposits | | | 20,204,570 | | | | 20,154,181 | | | | 20,515,668 | | | | 20,729,557 | Retirement benefits payable | | | 96,570 | | | | 97,409 | | | | 99,052 | | | | 94,504 | Other liabilities | | | 645,331 | | | | 568,431 | | | | 571,167 | | | | 540,746 | Total liabilities | | | 20,946,471 | | | | 20,820,021 | | | | 21,185,887 | | | | 21,364,807 | | | | | | | | | | | | | Stockholders' equity | | | | | | | | | | | | Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,662,115 / 121,681,352 shares as of September 30, 2026, issued/outstanding: 142,661,019 / 121,680,634 shares as of June 30, 2026, issued/outstanding: 142,184,584 / 122,689,256 shares as of December 31, 2025 and issued/outstanding: 142,173,027 / 123,719,585 shares as of September 30, 2025) | | | 1,427 | | | | 1,427 | | | | 1,422 | | | | 1,422 | Additional paid-in capital | | | 2,588,530 | | | | 2,584,578 | | | | 2,576,540 | | | | 2,572,156 | Retained earnings | | | 1,187,636 | | | | 1,156,028 | | | | 1,078,885 | | | | 1,041,573 | Accumulated other comprehensive loss, net | | | (403,826 | ) | | | (359,793 | ) | | | (368,140 | ) | | | (388,149 | ) Treasury stock (20,980,763 shares as of September 30, 2026, 20,980,385 shares as of June 30, 2026, 19,495,328 shares as of December 31, 2025 and 18,453,442 shares as of September 30, 2025) | | | (556,223 | ) | | | (556,212 | ) | | | (519,342 | ) | | | (493,081 | ) Total stockholders' equity | | | 2,817,544 | | | | 2,826,028 | | | | 2,769,365 | | | | 2,733,921 | Total liabilities and stockholders' equity | | $ | 23,764,015 | | | $ | 23,646,049 | | | $ | 23,955,252 | | | $ | 24,098,728 | | | | | | | | | | | | | | | | | | | | | | | | | | Average Balances and Interest Rates | | | | | | | | | | | | | | | | | | | | | | | | Table 4 | | Three Months Ended | | Three Months Ended | | Three Months Ended | | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | (dollars in millions) | | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | Earning Assets | | | | | | | | | | | | | | | | | | | | | | | | | Interest-Bearing Deposits in Other Banks | | $ | 1,162.4 | | $ | 10.9 | | 3.73 | % | $ | 1,142.4 | | $ | 10.5 | | 3.68 | % | $ | 1,471.0 | | $ | 16.3 | | 4.40 | % Available-for-Sale Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | Taxable | | | 2,060.5 | | | 16.2 | | 3.14 | | | 2,081.7 | | | 15.8 | | 3.05 | | | 1,921.2 | | | 13.5 | | 2.80 | Non-Taxable | | | 0.1 | | | — | | 2.20 | | | 0.4 | | | — | | 4.42 | | | 1.2 | | | — | | 5.07 | Held-to-Maturity Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | Taxable | | | 2,795.2 | | | 11.8 | | 1.69 | | | 2,860.7 | | | 12.1 | | 1.69 | | | 3,036.1 | | | 12.8 | | 1.68 | Non-Taxable | | | 587.9 | | | 3.3 | | 2.26 | | | 590.3 | | | 3.3 | | 2.23 | | | 595.5 | | | 3.6 | | 2.39 | Total Investment Securities | | | 5,443.7 | | | 31.3 | | 2.30 | | | 5,533.1 | | | 31.2 | | 2.26 | | | 5,554.0 | | | 29.9 | | 2.15 | Loans Held for Sale | | | 0.9 | | | — | | 5.82 | | | 0.6 | | | — | | 5.68 | | | 0.9 | | | — | | 5.71 | Loans and Leases(1) | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | 2,328.7 | | | 33.2 | | 5.66 | | | 2,275.4 | | | 32.3 | | 5.69 | | | 2,144.0 | | | 33.6 | | 6.22 | Commercial real estate | | | 4,741.5 | | | 68.6 | | 5.74 | | | 4,736.0 | | | 67.6 | | 5.73 | | | 4,481.5 | | | 69.9 | | 6.18 | Construction | | | 705.8 | | | 11.8 | | 6.60 | | | 770.2 | | | 12.4 | | 6.48 | | | 891.9 | | | 15.2 | | 6.78 | Residential: | | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgage | | | 4,029.1 | | | 40.5 | | 4.02 | | | 4,038.8 | | | 40.9 | | 4.05 | | | 4,077.1 | | | 40.4 | | 3.96 | Home equity line | | | 1,178.7 | | | 14.6 | | 4.91 | | | 1,181.8 | | | 14.2 | | 4.82 | | | 1,167.0 | | | 14.0 | | 4.76 | Consumer | | | 1,066.3 | | | 20.8 | | 7.74 | | | 1,044.1 | | | 20.1 | | 7.74 | | | 1,018.4 | | | 19.6 | | 7.63 | Lease financing | | | 446.6 | | | 3.7 | | 3.31 | | | 441.9 | | | 3.9 | | 3.51 | | | 429.4 | | | 4.3 | | 3.98 | Total Loans and Leases | | | 14,496.7 | | | 193.2 | | 5.30 | | | 14,488.2 | | | 191.4 | | 5.30 | | | 14,209.3 | | | 197.0 | | 5.51 | Other Earning Assets | | | 24.5 | | | 0.2 | | 3.07 | | | 28.7 | | | 0.2 | | 2.36 | | | 36.6 | | | 0.4 | | 4.72 | Total Earning Assets(2) | | | 21,128.2 | | | 235.6 | | 4.44 | | | 21,193.0 | | | 233.3 | | 4.41 | | | 21,271.8 | | | 243.6 | | 4.55 | Cash and Due from Banks | | | 241.0 | | | | | | | | 239.1 | | | | | | | | 243.3 | | | | | | Other Assets | | | 2,586.1 | | | | | | | | 2,522.3 | | | | | | | | 2,478.6 | | | | | | Total Assets | | $ | 23,955.3 | | | | | | | $ | 23,954.4 | | | | | | | $ | 23,993.7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest-Bearing Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | Interest-Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | | Savings | | $ | 6,248.0 | | $ | 18.0 | | 1.15 | % | $ | 6,407.4 | | $ | 19.6 | | 1.23 | % | $ | 6,331.6 | | $ | 21.9 | | 1.37 | % Money Market | | | 4,358.4 | | | 20.3 | | 1.84 | | | 4,321.3 | | | 19.5 | | 1.81 | | | 3,837.6 | | | 23.4 | | 2.42 | Time | | | 3,268.9 | | | 21.9 | | 2.66 | | | 3,275.3 | | | 22.1 | | 2.71 | | | 3,353.9 | | | 25.5 | | 3.02 | Total Interest-Bearing Deposits | | | 13,875.3 | | | 60.2 | | 1.72 | | | 14,004.0 | | | 61.2 | | 1.75 | | | 13,523.1 | | | 70.8 | | 2.08 | Federal Funds Purchased | | | 0.1 | | | — | | 3.77 | | | — | | | — | | — | | | — | | | — | | — | Other Short-Term Borrowings | | | — | | | — | | — | | | — | | | — | | — | | | 206.5 | | | 2.2 | | 4.22 | Other Interest-Bearing Liabilities | | | 27.3 | | | 0.2 | | 3.29 | | | 19.5 | | | 0.2 | | 3.16 | | | 14.4 | | | 0.2 | | 5.46 | Total Interest-Bearing Liabilities | | | 13,902.7 | | | 60.4 | | 1.72 | | | 14,023.5 | | | 61.4 | | 1.76 | | | 13,744.0 | | | 73.2 | | 2.11 | Net Interest Income | | | | | $ | 175.2 | | | | | | | $ | 171.9 | | | | | | | $ | 170.4 | | | Interest Rate Spread(3) | | | | | | | | 2.72 | % | | | | | | | 2.65 | % | | | | | | | 2.44 | % Net Interest Margin(4) | | | | | | | | 3.30 | % | | | | | | | 3.25 | % | | | | | | | 3.19 | % Noninterest-Bearing Demand Deposits | | | 6,533.3 | | | | | | | | 6,479.3 | | | | | | | | 6,888.0 | | | | | | Other Liabilities | | | 673.5 | | | | | | | | 654.7 | | | | | | | | 651.4 | | | | | | Stockholders' Equity | | | 2,845.8 | | | | | | | | 2,796.9 | | | | | | | | 2,710.3 | | | | | | Total Liabilities and Stockholders' Equity | | $ | 23,955.3 | | | | | | | $ | 23,954.4 | | | | | | | $ | 23,993.7 | | | | | | ______________________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.1 million, $0.9 million and $1.0 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, on a fully taxable-equivalent basis, divided by average total earning assets. | | | | | | | | | | | | | | | | | Average Balances and Interest Rates | | | | | | | | | | | | | | | | Table 5 | | Nine Months Ended | | Nine Months Ended | | | September 30, 2026 | | September 30, 2025 | | | Average | | Income/ | | Yield/ | | Average | | Income/ | | Yield/ | (dollars in millions) | | Balance | | Expense | | Rate | | Balance | | Expense | | Rate | Earning Assets | | | | | | | | | | | | | | | | | Interest-Bearing Deposits in Other Banks | | $ | 1,252.2 | | $ | 34.6 | | 3.69 | % | $ | 1,307.4 | | $ | 43.3 | | 4.43 | % Available-for-Sale Investment Securities | | | | | | | | | | | | | | | | | Taxable | | | 2,064.3 | | | 46.9 | | 3.03 | | | 1,894.1 | | | 39.0 | | 2.75 | Non-Taxable | | | 0.4 | | | — | | 4.57 | | | 1.3 | | | 0.1 | | 5.31 | Held-to-Maturity Investment Securities | | | | | | | | | | | | | | | | | Taxable | | | 2,857.0 | | | 35.9 | | 1.67 | | | 3,099.5 | | | 39.6 | | 1.70 | Non-Taxable | | | 590.3 | | | 10.1 | | 2.29 | | | 597.0 | | | 10.5 | | 2.37 | Total Investment Securities | | | 5,512.0 | | | 92.9 | | 2.25 | | | 5,591.9 | | | 89.2 | | 2.13 | Loans Held for Sale | | | 0.8 | | | — | | 5.80 | | | 0.5 | | | — | | 6.03 | Loans and Leases(1) | | | | | | | | | | | | | | | | | Commercial and industrial | | | 2,258.8 | | | 96.3 | | 5.70 | | | 2,210.6 | | | 102.5 | | 6.20 | Commercial real estate | | | 4,695.8 | | | 201.2 | | 5.73 | | | 4,431.6 | | | 203.2 | | 6.13 | Construction | | | 750.3 | | | 36.6 | | 6.52 | | | 909.6 | | | 45.6 | | 6.71 | Residential: | | | | | | | | | | | | | | | | | Residential mortgage | | | 4,049.7 | | | 122.4 | | 4.03 | | | 4,110.2 | | | 121.5 | | 3.94 | Home equity line | | | 1,178.7 | | | 42.4 | | 4.81 | | | 1,157.2 | | | 40.4 | | 4.67 | Consumer | | | 1,048.4 | | | 61.0 | | 7.77 | | | 1,017.2 | | | 57.7 | | 7.58 | Lease financing | | | 443.9 | | | 11.7 | | 3.52 | | | 432.6 | | | 12.8 | | 3.96 | Total Loans and Leases | | | 14,425.6 | | | 571.6 | | 5.29 | | | 14,269.0 | | | 583.7 | | 5.47 | Other Earning Assets | | | 26.6 | | | 0.6 | | 2.63 | | | 34.4 | | | 1.3 | | 5.03 | Total Earning Assets(2) | | | 21,217.2 | | | 699.7 | | 4.41 | | | 21,203.2 | | | 717.5 | | 4.52 | Cash and Due from Banks | | | 235.6 | | | | | | | | 233.9 | | | | | | Other Assets | | | 2,544.4 | | | | | | | | 2,477.8 | | | | | | Total Assets | | $ | 23,997.2 | | | | | | | $ | 23,914.9 | | | | | | | | | | | | | | | | | | | | | | | Interest-Bearing Liabilities | | | | | | | | | | | | | | | | | Interest-Bearing Deposits | | | | | | | | | | | | | | | | | Savings | | $ | 6,352.7 | | $ | 56.6 | | 1.19 | % | $ | 6,270.9 | | $ | 64.1 | | 1.37 | % Money Market | | | 4,346.2 | | | 59.5 | | 1.83 | | | 3,860.3 | | | 69.2 | | 2.40 | Time | | | 3,308.1 | | | 67.4 | | 2.72 | | | 3,353.6 | | | 79.5 | | 3.17 | Total Interest-Bearing Deposits | | | 14,007.0 | | | 183.5 | | 1.75 | | | 13,484.8 | | | 212.8 | | 2.11 | Federal Funds Purchased | | | — | | | — | | 3.77 | | | — | | | — | | — | Other Short-Term Borrowings | | | — | | | — | | — | | | 235.3 | | | 7.4 | | 4.22 | Other Interest-Bearing Liabilities | | | 19.8 | | | 0.5 | | 3.27 | | | 20.9 | | | 0.8 | | 4.84 | Total Interest-Bearing Liabilities | | | 14,026.8 | | | 184.0 | | 1.75 | | | 13,741.0 | | | 221.0 | | 2.15 | Net Interest Income | | | | | $ | 515.7 | | | | | | | $ | 496.5 | | | Interest Rate Spread(3) | | | | | | | | 2.66 | % | | | | | | | 2.37 | % Net Interest Margin(4) | | | | | | | | 3.25 | % | | | | | | | 3.13 | % Noninterest-Bearing Demand Deposits | | | 6,497.4 | | | | | | | | 6,863.8 | | | | | | Other Liabilities | | | 662.3 | | | | | | | | 637.8 | | | | | | Stockholders' Equity | | | 2,810.7 | | | | | | | | 2,672.3 | | | | | | Total Liabilities and Stockholders' Equity | | $ | 23,997.2 | | | | | | | $ | 23,914.9 | | | | | | ______________________________________ (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $3.1 million for both the nine months ended September 30, 2026 and 2025, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the nine months ended September 30, 2026 and 2025, on a fully taxable-equivalent basis, divided by average total earning assets. | | | | | | | | | Analysis of Change in Net Interest Income | | | | | | | | | Table 6 | | Three Months Ended September 30, 2026 | | Compared to June 30, 2026 (dollars in millions) | | Volume | | Rate | | Total (1) Change in Interest Income: | | | | | | | | | Interest-Bearing Deposits in Other Banks | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.4 | Available-for-Sale Investment Securities | | | | | | | | | Taxable | | | (0.1 | ) | | | 0.5 | | | | 0.4 | Held-to-Maturity Investment Securities | | | | | | | | | Taxable | | | (0.3 | ) | | | — | | | | (0.3 | ) Total Investment Securities | | | (0.4 | ) | | | 0.5 | | | | 0.1 | Loans and Leases | | | | | | | | | Commercial and industrial | | | 1.0 | | | | (0.1 | ) | | | 0.9 | Commercial real estate | | | 0.4 | | | | 0.6 | | | | 1.0 | Construction | | | (0.9 | ) | | | 0.3 | | | | (0.6 | ) Residential: | | | | | | | | | Residential mortgage | | | (0.1 | ) | | | (0.3 | ) | | | (0.4 | ) Home equity line | | | — | | | | 0.4 | | | | 0.4 | Consumer | | | 0.7 | | | | — | | | | 0.7 | Lease financing | | | — | | | | (0.2 | ) | | | (0.2 | ) Total Loans and Leases | | | 1.1 | | | | 0.7 | | | | 1.8 | Total Change in Interest Income | | | 0.9 | | | | 1.4 | | | | 2.3 | | | | | | | | | | Change in Interest Expense: | | | | | | | | | Interest-Bearing Deposits | | | | | | | | | Savings | | | (0.4 | ) | | | (1.2 | ) | | | (1.6 | ) Money Market | | | 0.3 | | | | 0.5 | | | | 0.8 | Time | | | — | | | | (0.2 | ) | | | (0.2 | ) Total Interest-Bearing Deposits | | | (0.1 | ) | | | (0.9 | ) | | | (1.0 | ) Total Change in Interest Expense | | | (0.1 | ) | | | (0.9 | ) | | | (1.0 | ) Change in Net Interest Income | | $ | 1.0 | | | $ | 2.3 | | | $ | 3.3 | ____________________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | | | | | | | | | Analysis of Change in Net Interest Income | | | | | | | | | Table 7 | | Three Months Ended September 30, 2026 | | Compared to September 30, 2025 (dollars in millions) | | Volume | | Rate | | Total (1) Change in Interest Income: | | | | | | | | | Interest-Bearing Deposits in Other Banks | | $ | (3.1 | ) | | $ | (2.3 | ) | | $ | (5.4 | ) Available-for-Sale Investment Securities | | | | | | | | | Taxable | | | 1.0 | | | | 1.7 | | | | 2.7 | Held-to-Maturity Investment Securities | | | | | | | | | Taxable | | | (1.1 | ) | | | 0.1 | | | | (1.0 | ) Non-Taxable | | | (0.1 | ) | | | (0.2 | ) | | | (0.3 | ) Total Investment Securities | | | (0.2 | ) | | | 1.6 | | | | 1.4 | Loans and Leases | | | | | | | | | Commercial and industrial | | | 2.7 | | | | (3.1 | ) | | | (0.4 | ) Commercial real estate | | | 3.8 | | | | (5.1 | ) | | | (1.3 | ) Construction | | | (3.0 | ) | | | (0.4 | ) | | | (3.4 | ) Residential: | | | | | | | | | Residential mortgage | | | (0.5 | ) | | | 0.6 | | | | 0.1 | Home equity line | | | 0.2 | | | | 0.4 | | | | 0.6 | Consumer | | | 0.9 | | | | 0.3 | | | | 1.2 | Lease financing | | | 0.2 | | | | (0.8 | ) | | | (0.6 | ) Total Loans and Leases | | | 4.3 | | | | (8.1 | ) | | | (3.8 | ) Other Earning Assets | | | (0.1 | ) | | | (0.1 | ) | | | (0.2 | ) Total Change in Interest Income | | | 0.9 | | | | (8.9 | ) | | | (8.0 | ) | | | | | | | | | Change in Interest Expense: | | | | | | | | | Interest-Bearing Deposits | | | | | | | | | Savings | | | (0.3 | ) | | | (3.6 | ) | | | (3.9 | ) Money Market | | | 2.9 | | | | (6.0 | ) | | | (3.1 | ) Time | | | (0.6 | ) | | | (3.0 | ) | | | (3.6 | ) Total Interest-Bearing Deposits | | | 2.0 | | | | (12.6 | ) | | | (10.6 | ) Other Short-Term Borrowings | | | (1.1 | ) | | | (1.1 | ) | | | (2.2 | ) Other Interest-Bearing Liabilities | | | 0.1 | | | | (0.1 | ) | | | — | Total Change in Interest Expense | | | 1.0 | | | | (13.8 | ) | | | (12.8 | ) Change in Net Interest Income | | $ | (0.1 | ) | | $ | 4.9 | | | $ | 4.8 | ______________________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | | | | | | | | | Analysis of Change in Net Interest Income | | | | | | | | | Table 8 | | Nine Months Ended September 30, 2026 | | Compared to September 30, 2025 (dollars in millions) | | Volume | | Rate | | Total (1) Change in Interest Income: | | | | | | | | | Interest-Bearing Deposits in Other Banks | | $ | (1.8 | ) | | $ | (6.9 | ) | | $ | (8.7 | ) Available-for-Sale Investment Securities | | | | | | | | | Taxable | | | 3.7 | | | | 4.2 | | | | 7.9 | Non-Taxable | | | (0.1 | ) | | | — | | | | (0.1 | ) Held-to-Maturity Investment Securities | | | | | | | | | Taxable | | | (3.0 | ) | | | (0.7 | ) | | | (3.7 | ) Non-Taxable | | | (0.1 | ) | | | (0.3 | ) | | | (0.4 | ) Total Investment Securities | | | 0.5 | | | | 3.2 | | | | 3.7 | Loans and Leases | | | | | | | | | Commercial and industrial | | | 2.2 | | | | (8.4 | ) | | | (6.2 | ) Commercial real estate | | | 11.7 | | | | (13.7 | ) | | | (2.0 | ) Construction | | | (7.7 | ) | | | (1.3 | ) | | | (9.0 | ) Residential: | | | | | | | | | Residential mortgage | | | (1.8 | ) | | | 2.7 | | | | 0.9 | Home equity line | | | 0.8 | | | | 1.2 | | | | 2.0 | Consumer | | | 1.8 | | | | 1.5 | | | | 3.3 | Lease financing | | | 0.3 | | | | (1.4 | ) | | | (1.1 | ) Total Loans and Leases | | | 7.3 | | | | (19.4 | ) | | | (12.1 | ) Other Earning Assets | | | (0.2 | ) | | | (0.5 | ) | | | (0.7 | ) Total Change in Interest Income | | | 5.8 | | | | (23.6 | ) | | | (17.8 | ) | | | | | | | | | Change in Interest Expense: | | | | | | | | | Interest-Bearing Deposits | | | | | | | | | Savings | | | 0.9 | | | | (8.4 | ) | | | (7.5 | ) Money Market | | | 8.0 | | | | (17.7 | ) | | | (9.7 | ) Time | | | (1.1 | ) | | | (11.0 | ) | | | (12.1 | ) Total Interest-Bearing Deposits | | | 7.8 | | | | (37.1 | ) | | | (29.3 | ) Other Short-Term Borrowings | | | (3.7 | ) | | | (3.7 | ) | | | (7.4 | ) Other Interest-Bearing Liabilities | | | — | | | | (0.3 | ) | | | (0.3 | ) Total Change in Interest Expense | | | 4.1 | | | | (41.1 | ) | | | (37.0 | ) Change in Net Interest Income | | $ | 1.7 | | | $ | 17.5 | | | $ | 19.2 | ______________________________________ (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. | | | | | | | | | | | | Loans and Leases | | | | | | | | | | | | Table 9 | | September 30, | | June 30, | | December 31, | | September 30, (dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 Commercial and industrial | | $ | 2,304,567 | | $ | 2,339,882 | | $ | 2,171,333 | | $ | 2,027,504 Commercial real estate | | | 4,714,502 | | | 4,783,130 | | | 4,590,326 | | | 4,513,706 Construction | | | 739,531 | | | 731,766 | | | 808,275 | | | 881,462 Residential: | | | | | | | | | | | | Residential mortgage | | | 3,996,717 | | | 4,044,207 | | | 4,096,300 | | | 4,077,946 Home equity line | | | 1,177,610 | | | 1,181,396 | | | 1,178,527 | | | 1,170,822 Total residential | | | 5,174,327 | | | 5,225,603 | | | 5,274,827 | | | 5,248,768 Consumer | | | 1,067,697 | | | 1,046,461 | | | 1,025,838 | | | 1,013,663 Lease financing | | | 461,604 | | | 450,457 | | | 441,930 | | | 444,280 Total loans and leases | | $ | 14,462,228 | | $ | 14,577,299 | | $ | 14,312,529 | | $ | 14,129,383 | | | | | | | | | | | | Deposits | | | | | | | | | | | | Table 10 | | September 30, | | June 30, | | December 31, | | September 30, (dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 Demand | | $ | 6,400,906 | | $ | 6,447,789 | | $ | 6,547,292 | | $ | 6,782,172 Savings | | | 6,248,848 | | | 6,132,746 | | | 6,308,873 | | | 6,691,136 Money Market | | | 4,313,623 | | | 4,283,982 | | | 4,289,370 | | | 3,874,614 Time | | | 3,241,193 | | | 3,289,664 | | | 3,370,133 | | | 3,381,635 Total Deposits | | $ | 20,204,570 | | $ | 20,154,181 | | $ | 20,515,668 | | $ | 20,729,557 | | | | | | | | | | | | Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More | | | | | | | | | | | | Table 11 | | September 30, | | June 30, | | December 31, | | September 30, (dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2025 Non-Performing Assets | | | | | | | | | | | | Non-Accrual Loans and Leases | | | | | | | | | | | | Commercial Loans: | | | | | | | | | | | | Commercial and industrial | | $ | 1,688 | | $ | 4,054 | | $ | 8,805 | | $ | 1,084 Commercial real estate | | | 13,833 | | | 2,879 | | | 3,007 | | | 3,089 Construction | | | 1,064 | | | 1,788 | | | 1,788 | | | 904 Lease financing | | | 115 | | | 680 | | | 734 | | | 169 Total Commercial Loans | | | 16,700 | | | 9,401 | | | 14,334 | | | 5,246 Residential Loans: | | | | | | | | | | | | Residential mortgage | | | 19,244 | | | 18,675 | | | 16,423 | | | 16,702 Home equity line | | | 10,030 | | | 11,425 | | | 10,271 | | | 8,385 Total Residential Loans | | | 29,274 | | | 30,100 | | | 26,694 | | | 25,087 Consumer | | | — | | | — | | | — | | | 600 Total Non-Accrual Loans and Leases | | | 45,974 | | | 39,501 | | | 41,028 | | | 30,933 Total Non-Performing Assets | | $ | 45,974 | | $ | 39,501 | | $ | 41,028 | | $ | 30,933 | | | | | | | | | | | | Accruing Loans and Leases Past Due 90 Days or More | | | | | | | | | | | | Commercial Loans: | | | | | | | | | | | | Commercial and industrial | | $ | 403 | | $ | 249 | | $ | 318 | | $ | 633 Commercial real estate | | | 1,690 | | | — | | | — | | | — Construction | | | — | | | — | | | — | | | 2,063 Total Commercial Loans | | | 2,093 | | | 249 | | | 318 | | | 2,696 Residential mortgage | | | 14,963 | | | 771 | | | 55 | | | 627 Consumer | | | 2,171 | | | 3,073 | | | 2,984 | | | 2,566 Total Accruing Loans and Leases Past Due 90 Days or More | | $ | 19,227 | | $ | 4,093 | | $ | 3,357 | | $ | 5,889 | | | | | | | | | | | | Total Loans and Leases | | $ | 14,462,228 | | $ | 14,577,299 | | $ | 14,312,529 | | $ | 14,129,383 | | | | | | | | | | | | | | | | Allowance for Credit Losses and Reserve for Unfunded Commitments | | Table 12 | | For the Three Months Ended | | For the Nine Months Ended | | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | (dollars in thousands) | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | Balance at Beginning of Period | | $ | 205,728 | | | $ | 204,265 | | | $ | 201,172 | | | $ | 204,165 | | | $ | 193,240 | | Loans and Leases Charged-Off | | | | | | | | | | | | | | | | Commercial Loans: | | | | | | | | | | | | | | | | Commercial and industrial | | | (6,918 | ) | | | (769 | ) | | | (1,106 | ) | | | (10,312 | ) | | | (3,253 | ) | Commercial real estate | | | (12,465 | ) | | | — | | | | — | | | | (12,465 | ) | | | — | | Lease financing | | | (6 | ) | | | — | | | | (580 | ) | | | (6 | ) | | | (662 | ) | Total Commercial Loans | | | (19,389 | ) | | | (769 | ) | | | (1,686 | ) | | | (22,783 | ) | | | (3,915 | ) | Home equity line | | | — | | | | (23 | ) | | | — | | | | (23 | ) | | | (30 | ) | Consumer | | | (6,281 | ) | | | (5,490 | ) | | | (4,719 | ) | | | (16,615 | ) | | | (14,287 | ) | Total Loans and Leases Charged-Off | | | (25,670 | ) | | | (6,282 | ) | | | (6,405 | ) | | | (39,421 | ) | | | (18,232 | ) | Recoveries on Loans and Leases Previously Charged-Off | | | | | | | | | | | | | | | | Commercial Loans: | | | | | | | | | | | | | | | | Commercial and industrial | | | 1,444 | | | | 281 | | | | 410 | | | | 1,991 | | | | 1,009 | | Commercial real estate | | | — | | | | — | | | | — | | | | — | | | | 251 | | Lease financing | | | — | | | | — | | | | — | | | | 3 | | | | — | | Total Commercial Loans | | | 1,444 | | | | 281 | | | | 410 | | | | 1,994 | | | | 1,260 | | Residential Loans: | | | | | | | | | | | | | | | | Residential mortgage | | | 11 | | | | 16 | | | | 14 | | | | 40 | | | | 143 | | Home equity line | | | 69 | | | | 28 | | | | 26 | | | | 136 | | | | 122 | | Total Residential Loans | | | 80 | | | | 44 | | | | 40 | | | | 176 | | | | 265 | | Consumer | | | 2,198 | | | | 1,820 | | | | 1,749 | | | | 6,266 | | | | 5,433 | | Total Recoveries on Loans and Leases Previously Charged-Off | | | 3,722 | | | | 2,145 | | | | 2,199 | | | | 8,436 | | | | 6,958 | | Net Loans and Leases Charged-Off | | | (21,948 | ) | | | (4,137 | ) | | | (4,206 | ) | | | (30,985 | ) | | | (11,274 | ) | Provision for Credit Losses | | | 20,308 | | | | 5,600 | | | | 4,500 | | | | 30,908 | | | | 19,500 | | Balance at End of Period | | $ | 204,088 | | | $ | 205,728 | | | $ | 201,466 | | | $ | 204,088 | | | $ | 201,466 | | Components: | | | | | | | | | | | | | | | | Allowance for Credit Losses | | $ | 164,437 | | | $ | 168,056 | | | $ | 165,269 | | | $ | 164,437 | | | $ | 165,269 | | Reserve for Unfunded Commitments | | | 39,651 | | | | 37,672 | | | | 36,197 | | | | 39,651 | | | | 36,197 | | Total Allowance for Credit Losses and Reserve for Unfunded Commitments | | $ | 204,088 | | | $ | 205,728 | | | $ | 201,466 | | | $ | 204,088 | | | $ | 201,466 | | Average Loans and Leases Outstanding | | $ | 14,496,740 | | | $ | 14,488,213 | | | $ | 14,209,282 | | | $ | 14,425,550 | | | $ | 14,269,030 | | Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) | | | 0.60 | | % | | 0.11 | | % | | 0.12 | | % | | 0.29 | | % | | 0.11 | | % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding | | | 1.14 | | % | | 1.15 | | % | | 1.17 | | % | | 1.14 | | % | | 1.17 | | % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases | | | 3.58x | | | 4.25x | | | 5.34x | | | 3.58x | | | 5.34x | ____________________________________ (1) Annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | Loans and Leases by Year of Origination and Credit Quality Indicator | | | Table 13 | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | | | Converted | | | | | Term Loans | | Revolving | | to Term | | | | | Amortized Cost Basis by Origination Year | | Loans | | Loans | | | | | | | | | | | | | | | | | | | | | | | Amortized | | Amortized | | | (dollars in thousands) | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Cost Basis | | Cost Basis | | Total Commercial Lending | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and Industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 202,063 | | $ | 241,039 | | $ | 149,553 | | $ | 57,135 | | $ | 51,359 | | $ | 289,563 | | $ | 1,146,313 | | $ | 28,352 | | $ | 2,165,377 Special Mention | | | 417 | | | 3,541 | | | 549 | | | 1,523 | | | 1,899 | | | 746 | | | 6,318 | | | — | | | 14,993 Substandard | | | 139 | | | 184 | | | 500 | | | 429 | | | 2,908 | | | 18,158 | | | 5,300 | | | — | | | 27,618 Other (1) | | | 17,281 | | | 13,451 | | | 6,347 | | | 2,954 | | | 2,249 | | | 2,043 | | | 52,254 | | | — | | | 96,579 Total Commercial and Industrial | | | 219,900 | | | 258,215 | | | 156,949 | | | 62,041 | | | 58,415 | | | 310,510 | | | 1,210,185 | | | 28,352 | | | 2,304,567 Current period gross charge-offs | | | — | | | 129 | | | 1,864 | | | 259 | | | 2,180 | | | 3,214 | | | 2,666 | | | — | | | 10,312 | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 538,756 | | | 723,291 | | | 364,311 | | | 391,394 | | | 585,898 | | | 1,643,436 | | | 114,656 | | | 6,267 | | | 4,368,009 Special Mention | | | 419 | | | — | | | 3,608 | | | 1,644 | | | 171,581 | | | 48,290 | | | 964 | | | — | | | 226,506 Substandard | | | 889 | | | — | | | 5,287 | | | 689 | | | 37,464 | | | 61,603 | | | 13,940 | | | — | | | 119,872 Other (1) | | | — | | | — | | | — | | | — | | | — | | | 115 | | | — | | | — | | | 115 Total Commercial Real Estate | | | 540,064 | | | 723,291 | | | 373,206 | | | 393,727 | | | 794,943 | | | 1,753,444 | | | 129,560 | | | 6,267 | | | 4,714,502 Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | 12,465 | | | — | | | — | | | 12,465 | | | | | | | | | | | | | | | | | | | | | | | | | | | Construction | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 64,419 | | | 174,295 | | | 235,743 | | | 53,119 | | | 148,418 | | | 11,369 | | | 3,579 | | | — | | | 690,942 Special Mention | | | — | | | — | | | — | | | — | | | 22,591 | | | — | | | — | | | — | | | 22,591 Substandard | | | — | | | — | | | — | | | — | | | — | | | 904 | | | — | | | — | | | 904 Other (1) | | | 4,740 | | | 8,669 | | | 4,719 | | | 2,805 | | | 1,719 | | | 1,767 | | | 675 | | | — | | | 25,094 Total Construction | | | 69,159 | | | 182,964 | | | 240,462 | | | 55,924 | | | 172,728 | | | 14,040 | | | 4,254 | | | — | | | 739,531 Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Lease Financing | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | | 118,981 | | | 61,372 | | | 75,171 | | | 82,562 | | | 32,936 | | | 89,720 | | | — | | | — | | | 460,742 Special Mention | | | — | | | — | | | 68 | | | 382 | | | 57 | | | — | | | — | | | — | | | 507 Substandard | | | — | | | 132 | | | 172 | | | 51 | | | — | | | — | | | — | | | — | | | 355 Total Lease Financing | | | 118,981 | | | 61,504 | | | 75,411 | | | 82,995 | | | 32,993 | | | 89,720 | | | — | | | — | | | 461,604 Current period gross charge-offs | | | — | | | — | | | 6 | | | — | | | — | | | — | | | — | | | — | | | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Commercial Lending | | $ | 948,104 | | $ | 1,225,974 | | $ | 846,028 | | $ | 594,687 | | $ | 1,059,079 | | $ | 2,167,714 | | $ | 1,343,999 | | $ | 34,619 | | $ | 8,220,204 Current period gross charge-offs | | $ | — | | $ | 129 | | $ | 1,870 | | $ | 259 | | $ | 2,180 | | $ | 15,679 | | $ | 2,666 | | $ | — | | $ | 22,783 (continued) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Revolving | | | | | | | | | | | | | | | | | | | | | | | | | | Loans | | | | | | | | | | | | | | | | | | | | | | | | | | Converted | | | | | Term Loans | | Revolving | | to Term | | | | | Amortized Cost Basis by Origination Year | | Loans | | Loans | | | (continued) | | | | | | | | | | | | | | | | | | | | Amortized | | Amortized | | | (dollars in thousands) | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Cost Basis | | Cost Basis | | Total Residential Lending | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential Mortgage | | | | | | | | | | | | | | | | | | | | | | | | | | | FICO: | | | | | | | | | | | | | | | | | | | | | | | | | | | 740 and greater | | $ | 157,553 | | $ | 187,527 | | $ | 127,156 | | $ | 155,856 | | $ | 413,991 | | $ | 2,176,053 | | $ | — | | $ | — | | $ | 3,218,136 680 - 739 | | | 22,002 | | | 18,668 | | | 15,661 | | | 24,033 | | | 67,424 | | | 275,860 | | | — | | | — | | | 423,648 620 - 679 | | | 2,635 | | | 8,008 | | | 8,553 | | | 5,716 | | | 18,661 | | | 69,081 | | | — | | | — | | | 112,654 550 - 619 | | | — | | | 1,060 | | | — | | | 1,945 | | | 5,375 | | | 16,974 | | | — | | | — | | | 25,354 Less than 550 | | | — | | | — | | | — | | | 441 | | | 3,802 | | | 17,872 | | | — | | | — | | | 22,115 No Score (3) | | | 7,850 | | | 5,511 | | | 2,887 | | | 4,728 | | | 15,250 | | | 47,394 | | | — | | | — | | | 83,620 Other (2) | | | 4,764 | | | 22,123 | | | 6,499 | | | 17,778 | | | 12,991 | | | 38,541 | | | 8,494 | | | — | | | 111,190 Total Residential Mortgage | | | 194,804 | | | 242,897 | | | 160,756 | | | 210,497 | | | 537,494 | | | 2,641,775 | | | 8,494 | | | — | | | 3,996,717 Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Equity Line | | | | | | | | | | | | | | | | | | | | | | | | | | | FICO: | | | | | | | | | | | | | | | | | | | | | | | | | | | 740 and greater | | | — | | | — | | | — | | | — | | | — | | | — | | | 924,498 | | | 332 | | | 924,830 680 - 739 | | | — | | | — | | | — | | | — | | | — | | | — | | | 179,779 | | | 1,604 | | | 181,383 620 - 679 | | | — | | | — | | | — | | | — | | | — | | | — | | | 47,607 | | | 633 | | | 48,240 550 - 619 | | | — | | | — | | | — | | | — | | | — | | | — | | | 13,382 | | | 375 | | | 13,757 Less than 550 | | | — | | | — | | | — | | | — | | | — | | | — | | | 8,612 | | | 30 | | | 8,642 No Score (3) | | | — | | | — | | | — | | | — | | | — | | | — | | | 758 | | | — | | | 758 Total Home Equity Line | | | — | | | — | | | — | | | — | | | — | | | — | | | 1,174,636 | | | 2,974 | | | 1,177,610 Current period gross charge-offs | | | — | | | — | | | — | | | — | | | — | | | — | | | 23 | | | — | | | 23 | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Residential Lending | | $ | 194,804 | | $ | 242,897 | | $ | 160,756 | | $ | 210,497 | | $ | 537,494 | | $ | 2,641,775 | | $ | 1,183,130 | | $ | 2,974 | | $ | 5,174,327 Current period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 23 | | $ | — | | $ | 23 | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer Lending | | | | | | | | | | | | | | | | | | | | | | | | | | | FICO: | | | | | | | | | | | | | | | | | | | | | | | | | | | 740 and greater | | $ | 95,688 | | $ | 85,965 | | $ | 48,787 | | $ | 29,752 | | $ | 28,841 | | $ | 9,062 | | $ | 98,607 | | $ | 61 | | $ | 396,763 680 - 739 | | | 76,834 | | | 67,554 | | | 33,419 | | | 17,684 | | | 14,466 | | | 5,241 | | | 86,795 | | | 581 | | | 302,574 620 - 679 | | | 46,475 | | | 34,123 | | | 14,524 | | | 8,382 | | | 7,706 | | | 3,947 | | | 50,763 | | | 900 | | | 166,820 550 - 619 | | | 8,343 | | | 13,276 | | | 7,917 | | | 5,138 | | | 4,675 | | | 2,581 | | | 17,429 | | | 809 | | | 60,168 Less than 550 | | | 2,360 | | | 5,503 | | | 4,270 | | | 2,208 | | | 2,523 | | | 1,334 | | | 5,572 | | | 573 | | | 24,343 No Score (3) | | | 4,376 | | | 274 | | | 3 | | | 17 | | | — | | | 10 | | | 37,409 | | | 201 | | | 42,290 Other (2) | | | 201 | | | 3,389 | | | — | | | — | | | — | | | 1,472 | | | 69,677 | | | — | | | 74,739 Total Consumer Lending | | $ | 234,277 | | $ | 210,084 | | $ | 108,920 | | $ | 63,181 | | $ | 58,211 | | $ | 23,647 | | $ | 366,252 | | $ | 3,125 | | $ | 1,067,697 Current period gross charge-offs | | $ | 525 | | $ | 2,613 | | $ | 1,778 | | $ | 1,435 | | $ | 786 | | $ | 1,772 | | $ | 7,162 | | $ | 544 | | $ | 16,615 | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Loans and Leases | | $ | 1,377,185 | | $ | 1,678,955 | | $ | 1,115,704 | | $ | 868,365 | | $ | 1,654,784 | | $ | 4,833,136 | | $ | 2,893,381 | | $ | 40,718 | | $ | 14,462,228 Current period gross charge-offs | | $ | 525 | | $ | 2,742 | | $ | 3,648 | | $ | 1,694 | | $ | 2,966 | | $ | 17,451 | | $ | 9,851 | | $ | 544 | | $ | 39,421 _____________________________ (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of September 30, 2026, the majority of the loans in this population were current. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a "Pass" rating. As of September 30, 2026, the majority of the loans in this population were current. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. | | | | | | | | | | | | | | | | GAAP to Non-GAAP Reconciliation | | Table 14 | | For the Three Months Ended | | For the Nine Months Ended | | | September 30, | | June 30, | | September 30, | | September 30, | (dollars in thousands) | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | Income Statement Data: | | | | | | | | | | | | | | | | Net income | | $ | 63,730 | | $ | 73,375 | | $ | 73,840 | | $ | 204,889 | | $ | 206,335 | | | | | | | | | | | | | | | | | Average total stockholders' equity | | $ | 2,845,750 | | $ | 2,796,857 | | $ | 2,710,273 | | $ | 2,810,686 | | $ | 2,672,284 | Less: average goodwill | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | Average tangible stockholders' equity | | $ | 1,850,258 | | $ | 1,801,365 | | $ | 1,714,781 | | $ | 1,815,194 | | $ | 1,676,792 | | | | | | | | | | | | | | | | | Average total assets | | $ | 23,955,273 | | $ | 23,954,425 | | $ | 23,993,685 | | $ | 23,997,190 | | $ | 23,914,896 | Less: average goodwill | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | Average tangible assets | | $ | 22,959,781 | | $ | 22,958,933 | | $ | 22,998,193 | | $ | 23,001,698 | | $ | 22,919,404 | | | | | | | | | | | | | | | | | Return on average total stockholders' equity(1) | | | 8.88 | % | | 10.52 | % | | 10.81 | % | | 9.75 | % | | 10.32 | % Return on average tangible stockholders' equity (non-GAAP)(1) | | | 13.67 | % | | 16.34 | % | | 17.08 | % | | 15.09 | % | | 16.45 | % | | | | | | | | | | | | | | | | Return on average total assets(1) | | | 1.06 | % | | 1.23 | % | | 1.22 | % | | 1.14 | % | | 1.15 | % Return on average tangible assets (non-GAAP)(1) | | | 1.10 | % | | 1.28 | % | | 1.27 | % | | 1.19 | % | | 1.20 | % | | | | | | | | | | | | As of | | As of | | As of | | As of | | | September 30, | | June 30, | | December 31, | | September 30, | (dollars in thousands, except per share amounts) | | 2026 | | 2026 | | 2025 | | 2025 | Balance Sheet Data: | | | | | | | | | | | | | Total stockholders' equity | | $ | 2,817,544 | | $ | 2,826,028 | | $ | 2,769,365 | | $ | 2,733,921 | Less: goodwill | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | Tangible stockholders' equity | | $ | 1,822,052 | | $ | 1,830,536 | | $ | 1,773,873 | | $ | 1,738,429 | | | | | | | | | | | | | | Total assets | | $ | 23,764,015 | | $ | 23,646,049 | | $ | 23,955,252 | | $ | 24,098,728 | Less: goodwill | | | 995,492 | | | 995,492 | | | 995,492 | | | 995,492 | Tangible assets | | $ | 22,768,523 | | $ | 22,650,557 | | $ | 22,959,760 | | $ | 23,103,236 | | | | | | | | | | | | | | Shares outstanding | | | 121,681,352 | | | 121,680,634 | | | 122,689,256 | | | 123,719,585 | | | | | | | | | | | | | | Total stockholders' equity to total assets | | | 11.86 | % | | 11.95 | % | | 11.56 | % | | 11.34 | % Tangible stockholders' equity to tangible assets (non-GAAP) | | | 8.00 | % | | 8.08 | % | | 7.73 | % | | 7.52 | % | | | | | | | | | | | | | Book value per share | | $ | 23.16 | | $ | 23.22 | | $ | 22.57 | | $ | 22.10 | Tangible book value per share (non-GAAP) | | $ | 14.97 | | $ | 15.04 | | $ | 14.46 | | $ | 14.05 | ____________________________________ (1) Annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026.

Image source: The Motley Fool. Oct. 23, 2026 - Senior Vice President, Strategic Planning and Investor Relations - Kevin Haseyama - Chairman, President and Chief Executive Officer - Robert Harrison - Chief Financial Officer - James Moses - Chief Risk Officer - Lea Nakamura Operator: Thank you for standing by, and welcome to the First Hawaiian, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Kevin Haseyama, Senior Vice President, Strategic Planning and Investor Relations. Please go ahead, sir. Kevin Haseyama: Thank you, Jonathan, and thank you, everyone, for joining us as we review our financial results for the third quarter of 2026. With me today are Bob Harrison, Chairman, President and CEO; Jamie Moses, Chief Financial Officer; and Lea Nakamura, Chief Risk Officer. We have prepared a slide presentation that we will refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the Investor Relations section. During today's call, we will be making forward-looking statements. So please refer to Slide 1 for our safe harbor statement. We may also discuss certain non-GAAP financial measures. The appendix to this presentation contains reconciliations of these non-GAAP financial measurements to the most directly comparable GAAP measurements. And now I'll turn the call over to Bob. Robert Harrison: Thank you, Kevin. Appreciate everybody joining us today. Turning to Slide 2. I'll start by providing an update on the acquisition. As you can see from the slide, we're making good progress obtaining the necessary regulatory and shareholder approvals. The next major milestones are the shareholder special meetings on October 29 and obtaining final regulatory approvals. Integration planning is going well, and we continue to expect to close this quarter. We will provide updates throughout the process. Now a quick overview of the local economy. It's been a challenging year as the state deals with dual headwinds of both higher energy costs and an unusually active storm season. In spite of that, the economy continues to grow, albeit at a slower pace. Statewide unemployment rate was relatively stable at 2.8% for September compared to the national unemployment rate of 4.2% for the same month. Visitor industry continues to be resilient. Total visitor arrivals were up 1.8% compared to last year, primarily due to visitors from the Mainland U.S. and Japan. Year-to-date spending through August was $15.2 billion, up 4.1% for the comparable period in 2025. The housing market remains stable. Median single-family home price on Oahu was $1.1 million in September, down 3.9% from last year. The condo prices remained stable at $523,000, up 2.8% from 2025. Turning to Slide 3. Our results for the quarter reflect the continued solid performance by the team. Net interest income increased, deposit costs declined, while deposit balances grew, and the margin increased 5 basis points. Net interest income was in line with expectations and noninterest expenses came in below expectations, excluding merger-related costs and a tax settlement expense. The $24.3 million tax settlement expense stemmed from a settlement with the State of California on tax liabilities resulting from our 2016 separation from BNP Paribas. The aforementioned tax settlement also resulted in a $31 million tax benefit in the third quarter. Overall, credit quality remains good, but we did have some noise in our credit metrics this quarter, and Lea will provide more details when she goes over that later. Turning to Slide 4. The balance sheet remains solid. We continue to be well capitalized with ample liquidity. Balance sheet remains asset sensitive and well positioned to benefit from a higher-for-longer rate scenario. During the quarter, we did not repurchase any shares. Turning to Slide 5. Total loans declined $115 million in the quarter. Decline was primarily due to unexpected CRE loan payoffs, a slight decline in dealer floor plan balances and runoff in the residential loan portfolio. As an example, we did have one large CRE loan that was paid off unexpectedly being refinanced by a mainland lender that offered very aggressive pricing, and I think that's a reflection of the credit quality of the portfolio as well as demand. Payoffs were more heavily weighted towards the end of the quarter as average balances in Q3 were slightly higher than the previous quarter. Now I'll turn it over to Jamie. James Moses: Thanks, Bob. Turning to Slide 6. Total deposits were up about $50 million, while our total cost of deposits fell by 3 basis points in the third quarter. Increased commercial and public operating deposit balances were partially offset by a decline in retail deposits, and our noninterest-bearing deposit ratio was 32%. On Slide 7, net interest income was $174.1 million, $3.1 million more than the prior quarter. The increase in NII was driven by the increase in the margin, along with the higher average loan balances in the quarter. The NIM in the third quarter was 3.30%, up 5 basis points linked quarter, with both asset yields and funding costs helping to drive that NIM accretion. Turning to Slide 8. Noninterest income was $56.1 million, in line with our outlook. Noninterest expense in the third quarter was $160 million. The quarter included $6.7 million of merger-related costs and, as Bob mentioned, also included a $24.3 million expense related to a California tax settlement agreement related to our 2016 IPO. This expense was more than offset by the $31 million tax benefit that we recognized as part of that settlement. Excluding these items, operating expenses were well within our expectations. And now I'll turn it over to Lea. Lea Nakamura: Thank you, Jamie. Moving to Slide 9. While we had some noise in the third quarter, the overall loan portfolio remains healthy. Asset quality remains strong, and the portfolios continue to perform within our expectations. Our risk appetite has not changed. We continue to manage our portfolio such that asset quality remains within our risk appetite as demonstrated by historical norms. This slide summarizes some of the drivers behind the changes in some of the key credit measures this quarter. Third quarter net charge-offs were $21.9 million or 60 basis points of total loans and leases. This was primarily driven by a $12.5 million partial charge-off of our participated loan on an office building located in downtown Seattle. This loan was originated in 2019 and performed well through COVID but has struggled due to the shifting economics associated with the city's contraction in office demand and higher-for-longer interest rates. We believe that this is an isolated situation. Our downtown Seattle office portfolio consists of only one other loan, which continues to perform and is backed by a very strong sponsor with whom we have partnered for many years. Our year-to-date annualized net charge-off rate is 29 basis points. Criticized assets increased by 72 basis points in the third quarter. This increase was primarily the result of 4 non-office commercial real estate loan downgrades. It is important to note that while the credit review process resulted in these downgrades, we believe that the actual loss content is limited. The bank recorded a $20.3 million provision in the third quarter. The increased provision expense was driven by the office charge-off and the CRE loan downgrades. The allowance for credit losses decreased by $4 million to $164 million with a coverage ratio of 1.14% of total loans and leases. Nonperforming assets and loans 90 days or more past due were 45 basis points of total loans and leases at the end of the third quarter. This increase was primarily related to operational issues arising out of the recent outsourcing of our residential mortgage servicing as well as the previously mentioned charged-off office loan as the portion that was not charged off was placed on nonaccrual. Since the end of the quarter, 40% of these residential mortgage loans have been brought current, and we are confident that we will be able to resolve the remaining population in good order. Turning to Slide 10, you can see a summary of our key credit metrics. And now I'll turn it back over to Bob. Robert Harrison: Thank you, Lea. On Slide 11, we have our updated outlook for our key performance drivers. We obviously didn't get the loan growth we expected in the third quarter. So we're reducing our full year loan outlook to 1% to 2% growth, down from 3% to 4% growth. Our asset-sensitive balance sheet continues to benefit from the higher interest rate environment. So we expect NIM in the fourth quarter to be between 3.34% to 3.35%, which increases our full year NIM outlook to 3.26% to 3.27%. Our outlook for noninterest income remains about $220 million for the full year. Expenses, excluding merger-related costs and tax expense in the third quarter related to that settlement, is expected to come in lower than previously -- than we previously thought, and our full year outlook is now in the $510 million to $515 million range. The effective tax rate should remain unchanged, and we're expecting approximately $25 million in merger-related costs in the fourth quarter. Now we'd be happy to take your questions. Operator: [Operator Instructions] Our first question for today comes from the line of Andrew Terrell from Stephens. Andrew Terrell: Maybe if I could just start on the loan growth. It looks like the expectations of, if I'm kind of reading it right, for kind of pretty flat loans, maybe up a little bit in the fourth quarter. Can you just talk us through kind of the pipelines today, opportunities you're seeing for growth out there right now? Robert Harrison: Yes, Andrew, Bob answering your question. Yes. No, the pipeline is still there. We still have quite a bit of loans in process. It's really the continuing battle of things getting paid off. So it's really -- that's the balance between a solid pipeline and looking over our shoulder a little bit for things that are unexpected. Andrew Terrell: Okay. And if I could ask just on the margin. I appreciate the guidance for the fourth quarter. There's, I think, a pretty wide range out there in terms of estimates for 2027 margin right now. Could you just talk to us when you put TriCo in the fold, and I know it may be tough to put a finger on, but can you just talk us through the general expectation of what kind of pro forma margin is? I don't know the best way to slice it, but just trying to tighten up the maybe expectations a little. James Moses: Andrew, it's Jamie. I appreciate the question, and I understand why you'd ask it. That's kind of hard for me to answer at the moment for sure. I can speak to our margin. We continue to see the effects of fixed-rate cash flow repricing on our balance sheet. It's about $400 million or so a quarter. And spread in this past quarter was about 170. So we think the spread is maybe 160 to 170 kind of going forward on that. And of course, that depends on Fed rate increases or not. And just a reminder, we expect, generally speaking, if there's a Fed rate increase in a prior quarter, we would expect a couple of basis points of margin accretion based on that. And then with the fixed rate cash flow repricing and then just general repricing on the balance sheet, we would expect another couple of basis points or so just if rates remain flat. So yes, that's what I got for you today. Robert Harrison: And Andrew, this is Bob again. Just a little more color on the loan side. We are seeing a still solid pipeline for CRE. Just to break it down a little bit, the residential continue to run off given the rate outlook, it's going to be difficult to see residential activity really picking up. But we are seeing CRE still being strong. And typically -- we don't know if it's going to come through. But typically, at the end of the year, you do see an increase in dealer floor plan balances. So that if we follow the usual norm, it should be an okay fourth quarter, but we did adjust our guidance to take into account what happened in the third quarter. Operator: And our next question comes from the line of David Feaster from Raymond James. David Feaster: I just wanted to start on the funding side. You've got a huge advantage being in Hawaii and the kind of the closed-loop nature of that market. Funding costs have continued to come down. I'm just kind of curious, the competitive landscape here as rates are going higher, do you have more funding cost leverage left? Or do you think we're kind of at a trough here? James Moses: David, it's Jamie. I think we're kind of at a trough in this quarter. I think this is probably as low as it's going to be, especially given the rate outlook that we've seen. Of course, that can change. Competitive pressures here in Hawaii continue to be muted, let's call it. All the large 4 banks here are -- we're all in the same boat in terms of loans-to-deposit ratio and things like that. So the competition is about kind of what it always has been. So rates up, I think, will kind of drive sort of, let's call it, CD repricing slightly higher because of that. And then we have our normal competition and where we're competitive with each other around client acquisition. So we're probably at a trough now. I guess the best way to describe it is we think maybe interest-bearing deposit betas somewhere in the 40% ratio in totality, where in total deposit betas will be like 30 or so, some 30 basis points or something like that. David Feaster: Okay. Terrific. And then, I mean, just looking at TriCo, I mean, they had a pretty solid quarter, right? And I'm just kind of curious as you guys are working together, getting prepared for the closing, still expecting to close by year-end. I guess, as you've got to know their team more, like how is lockups going? How are you preparing for the integration and conversion? Just kind of any updates on -- because I mean, like that, I think, is one of the bigger risks with the deal, right, is just the execution of integrating this and getting that done smoothly. Could you just touch on some of the things that you're working on to prepare for that and make it a smooth transition as possible? Robert Harrison: Sure, David, this is Bob. Happy to answer that question. Yes, we're very focused on that. We're working very closely with them. Jamie is actually heading our Integration Management Office. Peter Wiese, their CFO, is heading it on their side. They're working closely on organizing the teams to get ready for post closing, whenever that happens, should be fourth quarter, as we've talked about. So that's happening. We've reached out to a number of their people. The vast majority are staying on with us. There are 1, maybe 2 that are not, and that's not unexpected. But really, we're excited to be working with them. And so far, really working closely together to see how we can get that done. We totally agree with you. The execution risk is what we're completely focused on, and that's what matters, and that's why we're spending a lot of time on it. Exchanging visits between TriCo to First Hawaiian and First Hawaiian employees going up to TriCo, everybody getting to know each other, really spending the time so that when we do close, we can really hit the ground running to make this work. David Feaster: Got it. And then maybe just kind of following up on that. When I talk to investors, one of the biggest concerns that they have is, I guess, can you let TriCo be TriCo? Because TriCo -- as we talked about, this is a merger of 2 really good banks, right? And TriCo is performing very well. How do you think about letting -- just the integration as -- 2 separate banks run in 2 separate markets. Kind of how do you think about letting them do what they do versus what are you going to bring in-house and maybe change some of what they do? I'm just kind of curious, how do you think about that whole concept? Robert Harrison: Yes. Rick and I have spent a lot of time talking about that. It is the most important thing to get right, so to speak. Of course, you need to do the core conversion, you need to do all those other things. But the really long-term value comes from letting TriCo be TriCo and us supporting them with their customers and in their markets. And if there's things we can learn from them, we will. If there are things they can learn from us, I'm sure they're open to that. I know they are because we've talked about it. So execution will prove that, and we just need to get through that, but that is a top priority for both Rick and myself and both sets of management teams as well. It's not just the 2 folks at the top. It's really both sets of management teams thinking and working the same way. Operator: And our next question comes from the line of Anthony Elian from JPMorgan. Anthony Elian: Slide 6, you call out -- you saw some nice growth in commercial deposits from 2Q. Can you give us some more color on what drove that and how you're thinking about commercial deposit and overall deposit growth going forward? James Moses: Yes. Tony, it's Jamie. So I would call that sort of normal flows that we saw in the quarter on the commercial side. Same kind of thing on the retail side, some sort of what I'll call like normal outflows. Typically, what we have in the fourth quarter is inflows across most -- across both retail and commercial for sure. Sometimes we see that in public, but that's a little more event-driven. I would say if you look to our past fourth quarter growth guide, those are kind of like where we usually come in, in the fourth quarter. I hesitate -- I kind of always say this, we hesitate to call it seasonal because we're not sure what really drives it. It just seems to happen for us in the fourth quarter every year. So we would expect some deposit growth in the quarter. Anthony Elian: And then my follow-up on credit. Can you give us some more color on other office or CRE loans you may be taking a closer look at, your level of confidence that 3Q is just a one-off quarter in terms of the migration you saw and any additional credit reviews you're doing? Robert Harrison: Tony, this is Bob. Maybe I'll start and then hand it off to Lea. I think it maybe is worth taking a second on the office building in Seattle. That's a key market that we've known for a long time. It was a 2-bank deal with a very strong agent, very strong sponsor at the time. It's still 75% occupied by a federal agency that's paying its rent. It's just downtown Seattle, if you haven't been there, is challenged right now. And the office market is severely impacted on that. So that's why we consider that one really a one-off. Having said that, we like to tell all the information we can as soon as we can. So just like we did during COVID, we've been doing deep dives throughout the whole portfolio, and that's what led to some of the regrades. But maybe I'll turn it over to Lea for any other comments she has. Lea Nakamura: No, I think we all understand that the high interest rates have stayed around a lot longer than we thought. And a lot of these loans were put on in a different interest rate environment. So we've been watching very carefully what's been happening to these properties. And by and large, we're very comfortable. We remain comfortable. When we enter these deals, we know that potentially there could be some downside, and that's why we have to be very careful about who we choose to participate with, who we choose as our sponsors. We don't have very much in Mainland office. It's not one of the portfolios that we are actively expanding. I think the other portions of our portfolios that we advertise as our core, those are still very strong. So -- yes. Robert Harrison: Does that answer your question, Tony? Anthony Elian: It does. Operator: And our next question comes from the line of Matthew Clark from Piper Sandler. Matthew Clark: Just rounding out the deposit cost conversation, do you have the spot rate at the end of September to give us some visibility? James Moses: Yes, it was 117 basis points, same as it was for the quarter. Matthew Clark: Okay. Great. And then on the $400 million of cash flows on the asset side, can you split that between loans and securities and the related spread pickup between the 2 that we should assume? I know it's going to get a little fuzzy with TriCo, but that would be helpful. James Moses: Yes. So roughly, let's call it, $250 million in -- on the loan side and $150 million on the securities side in the, let's call it, 110 basis points spread on the loans and maybe 200 basis points or so on the securities at this moment. Matthew Clark: Okay. Great. And then just on the downgrade of the 4 CRE loans, can you just provide a little more color there? It sounds like it's rate-related, but the size of each of those credits, the types of properties and kind of the outlook for each of those credits? Lea Nakamura: So 3 of the downgrades came out of the national SNC exam. 2 are portfolio loans, which are multifamily properties in multiple areas. They were entered into several years ago in 2020, again, in a different rate environment. And again, not an area that we are -- not a type of asset that we have actively grown in many, many years. We went into it because we were looking for a little more diversification. We don't really have many of those assets left. Robert Harrison: But we look closely at the loss content, and we think whatever provisions we've made are appropriate for that, Matt. Matthew Clark: Great. And can you remind us of the size of your SNC portfolio and the percentage that's criticized? Lea Nakamura: So C&I SNC is the credit-only pieces. So the pieces that we bought on the secondary, that's $275 million in outstanding and everything is pass rated, except for we have an $11.6 million unfunded commitment, and that's special mention. But everything else is pass. Matthew Clark: Any CRE SNCs? Lea Nakamura: So we have CRE SNCs. I don't... Robert Harrison: We might have to get back to you at that number, Matt. Lea Nakamura: Yes. Operator: And our next question comes from the line of Janet Lee from TD Cowen. Sun Young Lee: On the lending front, it looks like C&I was down, most of it from the lower dealer flooring. Is the expectation that C&I can still grow from here but then being partially offset by still elevated CRE payoffs? Or some of your peers have been talking about how the CRE payoffs may moderate a little bit because of higher rates? Or do you see activity declining on either side CRE or C&I in terms of the demand? Robert Harrison: Well, Janet, this is Bob. I think that part of that is much of our C&I historically, the volatility is driven by dealer floor plan, and that comes and goes depend on what's happening in the market. Obviously, rates being up, dealers are going to do their best to manage their inventory. A little slower economy should lead to higher floor plan balances as cars don't move as quick. So those are both kind of offsetting. So it's not an easy answer one way or the other. The balances typically do go up in the fourth quarter. We have been onboarding a new client or 2 every quarter or so. So you have some natural growth in the portfolio as well. But it really is hard to predict exactly the rate of flow of what the balances are going to be. The only thing we do control is getting out there and working with new customers, potential prospects and converting those. And so that's how we take charge of that portfolio. Broadly, in the market for our C&I and unfunded lines, the utilization has been within a few basis points about the same throughout the year. So there might be bumps up or down, but we really haven't seen a sustained growth in working capital borrowings as an example. So does that answer your question? Sun Young Lee: Yes, it does. Jamie, just a follow-up to your beta comment, 40%-ish on interest-bearing and 30 basis points -- sorry, 30% on total deposit beta. Is that just for legacy First Hawaiian? Or does that include TriCo? James Moses: Yes. Good question, Janet. That was just us. That's just legacy First Hawaiian. Sun Young Lee: How would that change with TriCo, if at all? James Moses: Hard to know or say at this point. I think once we finally get closed and we can -- we'll be working together between now and then, we'll figure out how all of our strategies will interact and how this will all work out together. But for now, it's kind of hard to say other than that we think very highly of how TriCo has managed their deposit costs over a very long period of time. And we would imagine that we're both going to continue to manage our costs in the same way that we do today or in very similar ways. Operator: And our next question comes from the line of Andrew Liesch from StoneX. Andrew Liesch: So I recognize that you didn't buy back any stock this quarter. Looking into next year, deal has closed, capital ratios [indiscernible] still be pretty solid. I mean how are you viewing capital -- or the buyback at that point? I mean your capital ratio should be really strong here after the deal closes. Robert Harrison: Yes. So this is Bob. It's certainly something that we've done consistently for a long time ever since we went public, and we did pause it for the transaction. The expectation would be that as we put the 2 organizations together and have the combined balance sheet, we see a lot of accretion, we see a lot of profitability that will add to that. And so together, that would certainly be something we would look to. We still have authorization to do buybacks. So all of that's on the table. It's just a little bit early to decide how much and when. Andrew Liesch: Got it. And then with the new Basel III rules, still expecting maybe 100 basis points to CET1? James Moses: Yes, that would be our expectation around that. Operator: And our next question comes from the line of Meghan Lynch from KBW. Meghan Lynch: So sort of with TriCo coming on, I was sort of wondering back to loan growth and your outlook. Is there any interest or thoughts about reducing the Mainland participation book? Or like how are you sort of thinking of your mix as you are -- become one with TriCo? Robert Harrison: Meghan, this is Bob. That's certainly something we're looking at and talking to the TriCo team about. Obviously, we'd always rather to have a full relationship with whoever we're doing business with and not have just a lending relationship, and that -- the combination of the 2 of us will allow us to build out the relationship with existing customers of ours that are today lending only or lending and cards only. So that will benefit, I think, across the board. And although we're both very liquid, if we have the opportunity to take some of that liquidity and capital and put it towards broader relationships, we'll certainly do that and over time, do less of the credit-only type of lending. Meghan Lynch: Okay. Awesome. That was helpful. And then on the systems conversion, have you decided which platform the combined bank will use? James Moses: We haven't really talked about that yet. We're in discussions. We're continuing to think that second half of next year is when we'll have our conversion. The teams are working very well together right now. Very excited about watching the relationships between TriCo and us develop inside the IMO offices. As Bob mentioned earlier, having people back and forth, getting to know each other a lot better. We feel really good about the way that this partnership is developing, and we still continue to be very excited about the strategic nature of this deal, and we know they feel the same way as well. Robert Harrison: And this is Bob. Specific to your question, though, we're not ready to announce that at this point. Meghan Lynch: All right. Got it. And then just one more. Could you provide a spot NIM? James Moses: Yes, it was 3.33% in September. Operator: [Operator Instructions] Our next question comes from the line of Jared Shaw from Barclays. Unknown Analyst: This is [ John ] on for Jared. I guess maybe building on the last couple of questions. As you've gotten to know TriCo more and more of the frontline employees there, have you thought more about the balance of the combined company between California and Hawaii and any areas of lending that they're focused on that you think are worth investing in post deal close? Robert Harrison: Yes, this is Bob. We're certainly having a lot of conversations about that. There's a couple of things that they do that we have not done historically, just lack of availability. One is oil and gas and the other is more agriculture and agriculture-related lending. They do a great job in those spaces, and we're certainly going to support them if there's opportunity to grow there, that we would certainly look to grow in that. A couple of things that we do that maybe we can take over there and see if the opportunity exists. We know the hospitality business very, very well. And again, that's going to be some of that cross-fertilization between the 2 teams to see how we can learn off each other, lean in and grow the combined bank. Unknown Analyst: Okay. Great. And then I guess leading into the deal close and after, I guess, are there any deposit promos or anything you're doing on the deposit side to make sure you retain those balances over the next like 6 to 12 months? James Moses: Well, we will be looking at all of that stuff over time. I think maybe the right way to think about it is there won't -- there's no branch overlap. So no branch closures. If you're a California customer of TriCo, you're going to continue to walk into the same branch you always walked into, with the same people and your same favorite teller that you always got to talk to. So there's -- that sort of disruption would be very much minimized. And the disruption will come around the time of say, probably conversion. So we've got some time to think about that, but we will be very, very focused on retaining customers to the best of our abilities, obviously, in California and here in Hawaii, like we always do. I think customer retention is something we always think about, and we'll continue to think about that in the next phase here. Operator: Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Kevin Haseyama for any further remarks. Kevin Haseyama: Thank you. We appreciate your interest in First Hawaiian, and please feel free to contact me if you have any additional questions. Thanks again for joining us, and have a good weekend. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. Before you buy stock in First Hawaiian, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Hawaiian wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,303,935!* Now, it's worth noting Stock Advisor's total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 23, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. First Hawaiian (FHB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

First Hawaiian (FHB) came out with quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -13.33%. A quarter ago, it was expected that this bank holding company would post earnings of $0.6 per share when it actually produced earnings of $0.6, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. First Hawaiian, which belongs to the Zacks Banks - West industry, posted revenues of $230.23 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.23%. This compares to year-ago revenues of $226.39 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Hawaiian shares have added about 3.3% since the beginning of the year versus the S&P 500's gain of 12%. While First Hawaiian has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Hawaiian was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $291.79 million in revenues for the coming quarter and $2.39 on $970.97 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sierra Bancorp (BSRR), another stock in the same industry, has yet to report results for the quarter ended September 2026. This parent company of Bank of the Sierra is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. Sierra Bancorp's revenues are expected to be $39.25 million, down 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report Sierra Bancorp (BSRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Hawaiian (FHB) reported $230.23 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 1.7%. EPS of $0.52 for the same period compares to $0.59 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $229.71 million, representing a surprise of +0.23%. The company delivered an EPS surprise of -13.33%, with the consensus EPS estimate being $0.60. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how First Hawaiian performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net interest margin: 3.3% compared to the 3.3% average estimate based on four analysts. - Efficiency Ratio: 69.2% compared to the 56% average estimate based on four analysts. - Net charge-offs: 0.6% versus 0.1% estimated by four analysts on average. - Total Non-Performing Assets: $45.97 million compared to the $41.11 million average estimate based on three analysts. - Total Non-Accrual Loans and Leases: $45.97 million versus $39.77 million estimated by three analysts on average. - Average Balance - Total Earning Assets: $21.13 billion versus $21.19 billion estimated by three analysts on average. - Tier 1 Capital Ratio: 13.5% versus 13.4% estimated by two analysts on average. - Tier 1 leverage ratio: 9.6% versus the two-analyst average estimate of 9.6%. - Total Capital Ratio: 14.7% versus the two-analyst average estimate of 14.5%. - Total Noninterest Income: $56.12 million compared to the $54.96 million average estimate based on four analysts. - Net Interest Income (FTE): $175.2 million versus the four-analyst average estimate of $175.2 million. - Net Interest Income: $174.1 million versus the four-analyst average estimate of $174.75 million. View all Key Company Metrics for First Hawaiian here>>> Shares of First Hawaiian have returned +4% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in First Hawaiian, Inc.? Here are five stocks we like better. - Third-quarter net interest income rose to $174.1 million, supported by a 5-basis-point increase in net interest margin to 3.30%, lower deposit costs and approximately $50 million in deposit growth. However, total loans fell $115 million due to commercial real estate payoffs, lower dealer floor-plan balances and residential loan runoff. - Credit metrics were pressured by a $12.5 million charge-off tied to a downtown Seattle office property and downgrades in four commercial real estate loans. Net charge-offs reached $21.9 million, or 60 basis points of loans, though management characterized the Seattle issue as isolated and overall portfolio quality as healthy. - First Hawaiian lowered its full-year loan-growth forecast to 1%–2% but raised its net interest margin outlook to 3.26%–3.27%. The company expects to complete its TriCo acquisition in the fourth quarter, pending shareholder and regulatory approvals, with integration planning already underway. First Hawaiian (NASDAQ:FHB) said its third-quarter results reflected higher net interest income, lower deposit costs and continued deposit growth, while credit metrics were affected by a charge-off tied to a downtown Seattle office property and several commercial real estate downgrades. Chairman, President and CEO Bob Harrison said the company continued to make progress toward completing its acquisition of TriCo, with shareholder special meetings scheduled for Oct. 29 and final regulatory approvals still pending. First Hawaiian expects the transaction to close during the fourth quarter and said integration planning is underway. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes "Integration planning is going well, and we continue to expect to close this quarter," Harrison said. Chief Financial Officer Jamie Moses said net interest income totaled $174.1 million, up $3.1 million from the prior quarter. The increase reflected a higher net interest margin and higher average loan balances during the quarter. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Third-quarter net interest margin was 3.30%, up 5 basis points sequentially, as asset yields and funding costs both contributed to margin expansion. Moses said September's spot net interest margin was 3.33%. Total deposits increased by roughly $50 million during the quarter, while the total cost of deposits declined by 3 basis points. Growth in commercial and public operating deposits was partly offset by lower retail deposits. Noninterest-bearing deposits represented 32% of total deposits. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Moses said commercial deposit growth reflected normal customer flows, while the company historically has experienced deposit inflows in the fourth quarter. He characterized deposit costs as likely near a trough under the current interest-rate outlook, citing muted competitive pressures in Hawaii. The company's total loans declined by $115 million in the third quarter, primarily because of unexpected commercial real estate loan payoffs, lower dealer floor-plan balances and continued runoff in residential loans. Harrison said one large commercial real estate loan was refinanced by a mainland lender offering aggressive pricing. Although loan balances fell, Harrison said First Hawaiian continues to see a solid lending pipeline, particularly in commercial real estate. He added that fourth-quarter dealer floor-plan balances typically increase, though the company reduced its full-year loan-growth guidance to account for third-quarter payoffs. Chief Risk Officer Lea Nakamura said overall portfolio quality remained healthy, though the quarter included "noise" in several credit measures. Net charge-offs totaled $21.9 million, or 60 basis points of total loans and leases. The result was primarily driven by a $12.5 million partial charge-off on a participated loan secured by an office building in downtown Seattle. Nakamura said the loan originated in 2019 and had performed well through the pandemic, but later encountered challenges from declining office demand in the city and persistently higher interest rates. Harrison said the property remains 75% occupied by a federal agency that is paying rent, but downtown Seattle's office market has been under significant pressure. The company views the situation as isolated, according to Nakamura, noting that First Hawaiian has only one other downtown Seattle office loan and that loan continues to perform. Year-to-date annualized net charge-offs were 29 basis points. Criticized assets increased by 72 basis points, largely because of four non-office commercial real estate loan downgrades. Nakamura said the company believes actual loss content in those downgraded loans is limited. First Hawaiian recorded a $20.3 million provision for credit losses during the quarter, reflecting the office charge-off and commercial real estate downgrades. Its allowance for credit losses declined by $4 million to $164 million, or 1.14% of total loans and leases. Nonperforming assets and loans 90 days or more past due were 45 basis points of total loans and leases at quarter-end. Nakamura attributed the increase mainly to operational issues following the outsourcing of residential mortgage servicing, along with the remaining non-charged-off portion of the Seattle office loan being placed on nonaccrual. Since quarter-end, 40% of the affected residential mortgage loans had been brought current, she said. Harrison said First Hawaiian now expects full-year loan growth of 1% to 2%, down from prior guidance of 3% to 4%. The company expects fourth-quarter net interest margin of 3.34% to 3.35%, raising its full-year margin outlook to 3.26% to 3.27%. First Hawaiian maintained its full-year noninterest-income outlook of about $220 million. It lowered its forecast for full-year expenses, excluding merger-related costs and the California tax settlement expense, to between $510 million and $515 million. Third-quarter noninterest expense totaled $160 million, including $6.7 million in merger-related costs and a $24.3 million California tax settlement expense related to tax liabilities arising from the company's 2016 separation from BNP Paribas. The settlement also generated a $31 million tax benefit during the quarter. The company expects about $25 million in merger-related costs during the fourth quarter. It did not repurchase shares during the quarter, though Harrison said buybacks could be considered after the TriCo transaction closes and the combined company's capital position is assessed. Management said it is focused on maintaining TriCo's customer relationships and operating model after closing. Harrison said the "long-term value" of the transaction depends on allowing TriCo to continue serving its markets while First Hawaiian provides support and both organizations share expertise. Harrison noted that TriCo has lending capabilities in areas such as oil and gas and agriculture-related finance, while First Hawaiian may bring hospitality expertise to the combined organization. Moses said there is no branch overlap between the banks, which should limit customer disruption, and the companies expect a systems conversion in the second half of the following year. "The execution risk is what we are completely focused on," Harrison said, citing visits and collaboration between employees from both companies as preparations continue. First Hawaiian, Inc is the parent company of First Hawaiian Bank, a regional financial institution headquartered in Honolulu, Hawaii. Founded in 1858, First Hawaiian Bank is the oldest bank in Hawaii and serves consumers, businesses, and government entities across the Pacific. The bank provides a broad range of financial products and services, including checking and savings accounts, consumer and residential loans, commercial lending, credit cards, treasury management, investment and wealth management services, and online and mobile banking. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "First Hawaiian Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

TriCo (TCBK) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.26%. A quarter ago, it was expected that this holding company for Tri Counties Bank would post earnings of $1.03 per share when it actually produced earnings of $1.06, delivering a surprise of +2.91%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. TriCo, which belongs to the Zacks Banks - West industry, posted revenues of $116.71 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.54%. This compares to year-ago revenues of $107.56 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TriCo shares have added about 11.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While TriCo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TriCo was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.09 on $115.13 million in revenues for the coming quarter and $4.28 on $448.71 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. First Hawaiian (FHB), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 23. This bank holding company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +1.7%. The consensus EPS estimate for the quarter has been revised 7.5% higher over the last 30 days to the current level. First Hawaiian's revenues are expected to be $229.71 million, up 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TriCo Bancshares (TCBK) : Free Stock Analysis Report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Bank of Hawaii (BOH) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 26, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $203.16 million, up 11.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Bank of Hawaii, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.17%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Bank of Hawaii will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Bank of Hawaii would post earnings of $1.46 per share when it actually produced earnings of $1.47, delivering a surprise of +0.68%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Bank of Hawaii doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - West industry, First Hawaiian (FHB), is soon expected to post earnings of $0.6 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +1.7%. This quarter's revenue is expected to be $229.71 million, up 1.5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for First Hawaiian has been revised 7.5% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that First Hawaiian will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of Hawaii Corporation (BOH) : Free Stock Analysis Report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First Hawaiian (FHB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +1.7%. Revenues are expected to be $229.71 million, up 1.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 7.51% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For First Hawaiian, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that First Hawaiian will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that First Hawaiian would post earnings of $0.6 per share when it actually produced earnings of $0.60, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. First Hawaiian doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Western Alliance (WAL), another stock in the Zacks Banks - West industry, is expected to report earnings per share of $2.43 for the quarter ended September 2026. This estimate points to a year-over-year change of +6.6%. Revenues for the quarter are expected to be $988.95 million, up 4.3% from the year-ago quarter. The consensus EPS estimate for Western Alliance has been revised 5.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.54%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Western Alliance will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Hawaiian, Inc. (FHB) : Free Stock Analysis Report Western Alliance Bancorporation (WAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research