First Hawaiian, Inc. reported financial results for the quarter ended September 30, 2026, posting net income of $63.7 million, or $0.52 per diluted share. This represents a decrease from the prior quarter's net income of $73.375 million, or $0.60 per diluted share. The company reported total assets of $23.8 billion as of September 30, 2026, compared to $23.6 billion at the end of the prior quarter.
On the balance sheet, gross loans and leases decreased by $115.1 million to $14.5 billion, while total deposits increased by $50.4 million to $20.2 billion. Net interest income for the third quarter of 2026 was $174.1 million, an increase of $3.1 million from the prior quarter. The net interest margin widened by 5 basis points to 3.30%.
Noninterest income was $56.1 million, a decrease of $4.2 million compared to the prior quarter. Noninterest expense was $160.0 million, an increase of $29.6 million, driven by $6.7 million in merger-related costs and a $24.3 million expense related to a tax liability settlement from a 2016 corporate reorganization.
The provision for credit losses was $20.3 million, compared to $5.6 million in the prior quarter. This increase was driven by a $12.5 million partial charge-off on a single commercial real estate loan and other downgrades. Net charge-offs were $21.9 million, or 0.60% of average loans and leases on an annualized basis. The effective tax rate was negative 27.8% due to a $31.0 million income tax benefit from the tax settlement agreement.
Capital ratios improved, with the tier 1 leverage ratio at 9.61%, the common equity tier 1 ratio at 13.50%, and the total capital ratio at 14.74%. The company did not repurchase any shares in the third quarter. Additionally, the Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 27, 2026, to stockholders of record on November 16, 2026.
