Keefe Bruyette analyst Kelly Motta has revised the price target for First Hawaiian (FHB, Financial), reducing it from $30 to $28. Despite this adjustment, the firm continues to maintain a Market Perform rating on the stock.
This move reflects a careful reassessment of FHB's prospects, aligning estimates with current market conditions. Investors are advised to consider this updated target when evaluating their positions in the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for First Hawaiian Inc (FHB, Financial) is $26.00 with a high estimate of $28.00 and a low estimate of $22.00. The average target implies an upside of 10.80% from the current price of $23.47. More detailed estimate data can be found on the First Hawaiian Inc (FHB) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, First Hawaiian Inc's (FHB, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for First Hawaiian Inc (FHB, Financial) in one year is $26.36, suggesting a upside of 12.34% from the current price of $23.465. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the First Hawaiian Inc (FHB) Summary page.
FHB Key Business Developments
Release Date: April 23, 2025
- Net Interest Income: $160.5 million, an increase of $1.8 million from the prior quarter.
- Noninterest Income: $50.5 million.
- Noninterest Expenses: $123.6 million.
- Total Loans: Declined by $115 million or 0.8% from the prior quarter.
- Retail Deposits: Increased by $105 million in the quarter.
- Commercial Deposits: Decreased by $167 million.
- Total Cost of Deposits: Fell by 11 basis points.
- Net Charge-Offs: $3.8 million year-to-date, with an annual rate of 11 basis points.
- Nonperforming Assets and 90-Day Past Due Loans: 17 basis points, down 2 basis points from the prior quarter.
- Provision for Credit Losses: $10.5 million in the first quarter.
- Allowance for Credit Losses (ACL): Increased by $6.2 million to $166.6 million, with coverage at 117 basis points of total loans and leases.
- Stock Repurchase: 974,000 shares repurchased at a total cost of $25 million, with $75 million remaining under the 2025 plan.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Net interest income increased versus the prior quarter, driven by declining deposit costs and investment portfolio restructuring.
- Retail deposits increased by $105 million, indicating strong customer relationships and growth.
- Credit quality remained excellent with low credit risk and stable metrics.
- The bank maintained a strong balance sheet with ample liquidity and capital, supporting customer needs.
- First Hawaiian Inc (FHB, Financial) repurchased approximately 974,000 shares, reflecting confidence in the company's financial position.
Negative Points
- Total loans declined by $115 million, primarily due to commercial real estate loan payoffs.
- Total deposits declined slightly, with commercial deposits falling by $167 million.
- Increased macroeconomic uncertainty led to a $10.5 million provision for credit losses.
- The company faces uncertainties related to international arrivals and consumer confidence, impacting the local economy.
- The competitive landscape for deposits remains challenging, with limited room to further reduce deposit costs.
