First Hawaiian Reports Q2 Earnings with Loan Growth, Improved Margin and TriCo Bancshares Merger Progress
In its second-quarter earnings report for 2026, First Hawaiian (NASDAQ:FHB) highlighted loan growth of $137 million and a net interest margin increase to 3.25%, up six basis points from the previous quarter. Management raised its full-year margin outlook to between 3.24% and 3.25%. Despite these gains, total deposits fell by $623 million due primarily to public-deposit outflows, though retail and commercial balances remained stable. The bank is focused on completing its merger with TriCo Bancshares (TCBK), expected near year-end, which it anticipates will deliver 25% in cost savings. Executives confirmed that share buybacks are paused during the regulatory review period for the deal. The Hawaiian economy showed resilience, with a low unemployment rate and rising visitor spending and housing prices. Credit quality remained strong across all segments, particularly commercial real estate and C&I lending, which saw significant growth due to dealer-flooring expansion and construction loan conversions.
Topics: deposit_changes loan_growth merger_update net_interest_margin