Latest news with #FHB
Yahoo
2 days ago
- Business
- Yahoo
First Hawaiian Second Quarter 2025 Earnings: Beats Expectations
First Hawaiian (NASDAQ:FHB) Second Quarter 2025 Results Key Financial Results Revenue: US$213.0m (up 5.0% from 2Q 2024). Net income: US$73.2m (up 18% from 2Q 2024). Profit margin: 34% (up from 31% in 2Q 2024). EPS: US$0.58 (up from US$0.48 in 2Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period First Hawaiian Revenues and Earnings Beat Expectations Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Looking ahead, revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's share price is broadly unchanged from a week ago. Balance Sheet Analysis While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. See our latest analysis on First Hawaiian's balance sheet health. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
First Hawaiian Inc (FHB) Q2 2025 Earnings Call Highlights: Strong Net Income Growth and ...
Net Income: Increased over 23% compared to the prior quarter. Net Interest Income: $163.6 million, $3.1 million higher than the prior quarter. Net Interest Margin (NIM): 3.11%, up 3 basis points from the prior quarter. Total Loans: Increased by $59 million or 0.4% from the prior quarter. Total Deposits: Increased slightly, with public deposits up by $166 million. Non-Interest Income: $54 million for the quarter. Expenses: Expected to be around $506 million for the full year. Provision for Credit Losses: $4.5 million in the second quarter. Allowance for Credit Losses (ACL): $167.8 million, with coverage at 1.17% of total loans and leases. Net Charge-Offs: $3.3 million for the quarter, 9 basis points. Non-Performing Assets: 23 basis points of total loans and leases, up 6 basis points from the prior quarter. Warning! GuruFocus has detected 5 Warning Signs with MHK. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points First Hawaiian Inc (NASDAQ:FHB) reported a strong second quarter with net income increasing over 23% compared to the prior quarter. The company experienced broad-based improvements driven by higher net interest and non-interest income, good expense control, and lower provision expense. Total loans increased by $59 million, with significant growth in the C&I portfolio due to a $125 million increase in dealer floor plan balances. The balance sheet remains solid with ample liquidity, and the company is well-capitalized. First Hawaiian Inc (NASDAQ:FHB) repurchased about 1 million shares at a total cost of $25 million, with $50 million of remaining authorization under the 2025 stock repurchase plan. Negative Points Retail and commercial deposits declined by $23 million and $127 million respectively, due to normal operational fluctuations. Non-performing assets and loans 90 days or more past due increased by 6 basis points from the prior quarter. The company adjusted its full-year loan growth guidance from low to mid-single digits to low single digits. There is uncertainty in the market due to tariffs, affecting car dealers and potentially impacting future balances. The consumer at the lower end is experiencing financial strain, with savings accumulated during COVID-19 diminishing. Q & A Highlights Q: How is the pipeline in terms of C&I, and is that the largest contributor to growth? Are we seeing increasing demand from CRE borrowers? A: Most C&I growth came from dealer floor plans, which have normalized. The balance was $786 million at the end of the quarter, up $125 million. Car sales have slowed, and there's uncertainty with tariffs. In CRE, some construction loans were expected to extend into mini perms but didn't, indicating good credit quality. We adjusted our guidance to low single digits for full-year growth. Q: How have tariffs impacted tourism spend on the islands? A: Tariffs mainly create uncertainty for car dealers, with little impact on tourism. Japanese and Canadian tourism is down due to economic factors and exchange rates, but US mainland arrivals have been strong, leading to increased arrivals and spending. Q: What are your capital priorities moving into the back half of the year? A: Our capital priorities remain focused on organic growth, maintaining a stable dividend, and share repurchases. We plan to deploy more of our repurchase authority in the latter half of the year. Q: How does your capital position influence your M&A strategy? A: We are open to M&A opportunities but are not actively pursuing any. Our capital levels are higher than past guidance, and we anticipate a rotation from securities to lending, which will utilize capital. Q: What impacted loan yields in the second quarter, and what are the expectations for the third quarter? A: The mix of loans impacted yields, with higher-margin construction loans being replaced by lower-margin C&I loans. We expect the NIM to increase slightly in the third quarter as fixed-rate cash flows are replaced by higher-yielding assets. Q: Can you provide an updated outlook on your tax rate following the recent tax law change? A: The effective tax rate for the rest of the year is expected to be 23.2%, which is fairly immaterial compared to previous guidance. Q: How are you managing deposit costs, and what are your expectations for deposit betas with future rate cuts? A: We have managed to reduce deposit costs effectively. We anticipate deposit betas to decline slightly with future rate cuts, maintaining a strong ability to pass through cuts to rate-sensitive customers. Q: What factors could drive increased loan activity among your client base? A: The outlook is influenced by economic conditions. Construction loans are being taken out by institutional buyers, and dealer floor plans are nearing pre-COVID levels. We are optimistic about the commercial pipeline but cautious about making long-term forecasts. Q: What is driving the increase in residential mortgage non-performers, and is there concern about consumer credit? A: The increase is due to consumers at the lower end being stretched as COVID savings diminish. However, the portfolio is performing as expected, and we are not concerned about significant losses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
18-07-2025
- Business
- Yahoo
First Hawaiian (FHB) Reports Next Week: Wall Street Expects Earnings Growth
The market expects First Hawaiian (FHB) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. 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 July 25, 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. Zacks Consensus Estimate This bank holding company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +2.1%. Revenues are expected to be $213.12 million, up 4.2% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 1.98% lower 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 Earnings Whisper 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). How Have the Numbers Shaped Up for First Hawaiian? For First Hawaiian, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.71%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that First Hawaiian will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? 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 First Hawaiian would post earnings of $0.46 per share when it actually produced earnings of $0.47, delivering a surprise of +2.17%. Over the last four quarters, the company has beaten consensus EPS estimates four times. Bottom Line 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. Expected Results of an Industry Player Another stock from the Zacks Banks - West industry, Cathay General (CATY), is soon expected to post earnings of $1.1 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +13.4%. Revenues for the quarter are expected to be $196 million, up 9.8% from the year-ago quarter. The consensus EPS estimate for Cathay has been revised 0.4% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.76%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Cathay will most likely 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 Cathay General Bancorp (CATY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
FHB Q1 Deep Dive: Deposit Cost Management and Economic Uncertainty Shape Outlook
Hawaiian banking company First Hawaiian (NASDAQ:FHB) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 2.5% year on year to $211 million. Its non-GAAP profit of $0.47 per share was in line with analysts' consensus estimates. Is now the time to buy FHB? Find out in our full research report (it's free). Revenue: $211 million vs analyst estimates of $209.7 million (2.5% year-on-year growth, 0.6% beat) Adjusted EPS: $0.47 vs analyst estimates of $0.46 (in line) Market Capitalization: $3.02 billion First Hawaiian's first quarter results saw stable performance, with management attributing revenue growth to disciplined deposit cost management and effective repositioning of the investment portfolio. CEO Bob Harrison noted that net interest income benefited from a decline in deposit costs and continued healthy credit quality. The bank's retail deposit growth offset fluctuations in commercial accounts, and asset quality metrics remained strong, with classified assets and net charge-offs both low. Management acknowledged increased macroeconomic uncertainty but emphasized that credit performance was in line with expectations. Harrison also highlighted, 'We continue to be well capitalized with ample liquidity.' Looking forward, First Hawaiian's leadership anticipates ongoing uncertainty in the economic environment, particularly due to questions around tariffs, visitor arrivals, and consumer confidence. CFO Jamie Moses stated that while the underlying balance sheet dynamics supporting net interest margin remain intact, the ability to further reduce deposit costs is limited outside of upcoming certificate of deposit repricings. The company expects loan growth opportunities depending on broader economic conditions, but management is cautious about the timing and impact of potential rate cuts and changing customer behaviors. As Harrison put it, 'There's more uncertainty in the market…we certainly can't tell what's going to happen in the back half of the year.' Management attributed the quarter's results to lower deposit costs, steady loan demand, and conservative credit practices, while highlighting increased uncertainty from external economic factors. Retail deposit growth: The bank saw a notable increase in retail deposits, which management credited to strong performance from branch teams and deeper customer relationships. This growth helped offset declines in commercial deposit balances, which management described as normal fluctuations among large accounts rather than a sign of broader weakness. Deposit cost management: CFO Jamie Moses highlighted the benefit from lower deposit costs, driven by both the pricing in of prior rate cuts and the ongoing repricing of certificates of deposit (CDs). Management acknowledged that further reductions in deposit costs may be limited, except for remaining CD repricings later in the year. Loan portfolio trends: Total loans declined modestly, mainly due to scheduled and early payoffs in commercial real estate and typical seasonal reductions in dealer floor plan balances. However, management emphasized a healthy loan pipeline and expressed optimism about potential loan growth, subject to economic conditions and uncertainty around tariffs. Expense discipline: Operating expenses were well controlled in the quarter, coming in below expectations. Management reiterated its commitment to balancing investment in technology and staff with overall expense guidance for the year, noting that large-scale tech investments have tapered off following prior years of elevated spend. Credit quality resilience: Chief Risk Officer Lea Nakamura reported that credit risk remains stable and within expectations, with low levels of nonperforming assets and net charge-offs. The bank increased its allowance for credit losses due to a more cautious economic outlook, but has not observed broad signs of credit deterioration across its portfolios. First Hawaiian's outlook is shaped by sustained margin discipline, the pace of loan growth, and the potential impact of external economic headwinds. Limited deposit cost flexibility: Management expects that most of the benefit from deposit repricing has already been realized, with remaining opportunities largely tied to upcoming CD maturities. This may limit further margin expansion unless market interest rates decline more than anticipated. Loan growth tied to economic outlook: While there is a healthy pipeline of potential loans, actual growth depends on economic conditions, including the effects of tariffs on local businesses and ongoing uncertainty in both the tourism and construction sectors. Management maintained a cautious stance, stating that loan growth could reach low- to mid-single digits for the year if conditions remain supportive. Expense and credit vigilance: The company plans to keep expenses within guidance while being prepared to invest in targeted projects if warranted by the economic outlook. Credit risk teams are closely monitoring portfolios potentially sensitive to tariffs and supply chain disruptions, especially among commercial borrowers in affected industries. In the coming quarters, our analysts will be closely watching (1) whether loan growth rebounds as expected, particularly in commercial and consumer sectors; (2) the impact of upcoming CD repricings and any further movement in deposit costs on net interest margin; and (3) how external factors like tariffs and tourism trends affect local economic activity and credit quality. The pace and effectiveness of targeted investments in technology and customer service will also be key to tracking ongoing competitiveness. First Hawaiian Bank currently trades at $24.05, up from $23.30 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Newsweek
10-06-2025
- Science
- Newsweek
US Detains Chinese Scientist for 'Smuggling' Biological Material From Wuhan
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A Chinese scientist has been detained by U.S. authorities, accused of smuggling biological materials into the country from the city of Wuhan, the Department of Justice (DOJ) said on Monday. Chengxuan Han, a citizen of the People's Republic of China (PRC), has been charged in a criminal complaint with smuggling goods into the United States and making false statements. Newsweek has contacted the Chinese Embassy in Washington D.C. for comment by email. Why It Matters Han is the third Chinese national in recent days to be accused of smuggling biological materials into the country. On June 3, the DOJ said two Chinese nationals had allegedly smuggled in a fungus known as Fusarium graminearum, which causes a disease called "head blight." It infects major staple crops such as wheat, barley, maize, and rice. The DOJ did not specify what biological material Han allegedly smuggled into the U.S., but said it was "related to roundworms." A University Of Michigan North Campus sign in Ann Arbor on July 30, 2019. A University Of Michigan North Campus sign in Ann Arbor on July 30, To Know Han, a doctoral student at the College of Life Science and Technology at the Huazhong University of Science and Technology in Wuhan, arrived at Detroit Metropolitan Airport on a J1 visa, which is issued to people taking part in academic exchange programs, from Shanghai on Sunday. She is accused of sending four packages from China to individuals associated with a laboratory at the University of Michigan last year and this year containing "concealed biological material." Han was detained was arrested after Customs and Border Protection (CBP) officers conducted an inspection. The DOJ said Han made false statements during questioning about the packages and the biological materials she had previously shipped to the United States. "Han admitted to sending the packages, admitted that the packages contained biological material related to roundworms, and admitted to making false statements to the CBP officers during her inspection," the DOJ said. Investigators also said Han deleted the contents of her electronic device three days before she landed in the U.S. "A complaint is only a charge and is not evidence of guilt. [A] trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment," the DOJ said. Last week, the DOJ accused Yunqing Jian, 33, and Zunyong Liu, 34, of smuggling in Fusarium Head Blight (FHB), which the department described as a "potential agroterrorism weapon." They were arrested and face charges of conspiracy, smuggling goods into the country, false statements, and visa fraud. FHB already poses a major threat to U.S. agriculture, causing nearly $3 billion in damage since the 1990s, Cornell University's Kerik Cox previously told Newsweek. Cox said that "strains of Fusarium graminearum can vary widely in aggressiveness." What People Are Saying United States Attorney Jerome F. Gorgon, Jr. said in a statement: "The alleged smuggling of biological materials by this alien from a science and technology university in Wuhan, China—to be used at a University of Michigan laboratory—is part of an alarming pattern that threatens our security. The American taxpayer should not be underwriting a PRC-based smuggling operation at one of our crucial public institutions." Cheyvoryea Gibson, special agent in charge of the FBI Detroit Field Office, said in a statement: "The FBI has zero tolerance for those who violate federal law and remains unwavering in our mission to protect the American people. "The alleged smuggling of biological materials by Chengxuan Han is a direct threat to public safety and national security, and it severely compromises the integrity of our nation's research institutions. CBP acting Director of Field Operations John Nowak said in a statement: "The guidelines for importing biological materials into the U.S. for research purposes are stringent, but clear, and actions like this undermine the legitimate work of other visiting scholars. "We will not tolerate the smuggling of regulated biological materials through our ports of entry, and this interdiction is another recent example of our commitment—along with that of our law enforcement partners—to preventing potentially dangerous goods from harming the American people." What Happens Next Han remains in custody ahead of a bond hearing on Wednesday.
