First Hawaiian Reduces Full-Year Loan Growth Targets Amid CRE Payoffs
During its third-quarter 2026 earnings call, First Hawaiian (FHB) lowered its full-year loan growth guidance to a range of 1% to 2%. This reduction was primarily driven by unexpected repayments in the commercial real estate (CRE) sector, declines in dealer floor plan balances, and runoff in residential loans as competitors offered aggressive refinancing rates. Despite lower loan growth, the bank reported an improved net interest margin (NIM) of 3.30%, up 5 basis points from the previous quarter. Management highlighted that First Hawaiian's dominant market share in Hawaii provides a stable, low-cost deposit base that protects margins. Additionally, the company is focused on its pending acquisition of TriCo Bancshares to expand into Northern California while maintaining local operational autonomy.
Topics: commercial real estate payoffs loan growth guidance mergers and acquisitions net interest margin