Back

First Hawaiian Lowers 2026 Loan-Growth Outlook

lite News Desk 2 min read

First Hawaiian reduced its forecast for 2026 loan growth to a range of 1% to 2%, replacing its previous range of 3% to 4%, according to CEO Robert Harrison’s statements in the third-quarter earnings-call transcript. Harrison stated that growth during the third quarter had fallen short of expectations.

At September 30, 2026, First Hawaiian’s gross loans and leases totaled $14.5 billion, a quarter-over-quarter decrease of $115.1 million, according to the company’s results. The earnings-call account described commercial real estate repayments that had not been anticipated, reduced dealer floor-plan balances and residential-loan runoff among the declines in lending balances.

Deposits moved in the opposite direction, ending the quarter at $20.2 billion after an increase of $50.4 million from the second quarter. First Hawaiian published the results on October 23, 2026, covering the three months through September 30.

For that period, the company reported net interest income totaling $174.1 million, exceeding the second-quarter figure by $3.1 million. Its net interest margin reached 3.30%, compared with the preceding quarter’s 3.25%. According to the call transcript, Harrison stated a fourth-quarter margin forecast ranging from 3.34% to 3.35% and a revised full-year 2026 forecast ranging from 3.26% to 3.27%.

Quarterly net income amounted to $63.7 million, equivalent to diluted earnings of $0.52 per share, according to First Hawaiian. The company also reported a credit-loss provision totaling $20.3 million. Credit items for the quarter included a partial charge-off of $12.5 million involving a single commercial real estate loan, along with downgrades elsewhere in commercial real estate.

Separately, First Hawaiian’s proposed acquisition of TriCo Bancshares remained subject to approvals. In the earnings-call transcript, Harrison stated that the company continued to expect completion during the fourth quarter of 2026, with shareholder and regulatory approvals still required.

The companies announced their acquisition agreement on July 13, 2026, describing a transaction payable entirely in shares. The announced exchange terms provide 2.095 shares of First Hawaiian stock for every TriCo share. At the announcement, the companies stated that they expected a year-end closing, conditional on regulatory approvals, shareholder votes and customary closing requirements.

* This article is based on publicly available information at the time of writing.

More from Companies & Markets

  1. The Financial Times reported J&J shareholders were to hold a proposed 50.1% stake in the combined company.

  2. Bloom reported third-quarter revenue of $1.24 billion, up 138.1% from the same quarter in 2025.

  3. Blackstone reported $1.37 trillion in assets under management, with more than $63 billion in quarterly inflows.

  4. Tesla reported $28.046 billion in third-quarter revenue, with services and other revenue up 33% year over year to $4.605 billion.

  5. According to the company, Global Wealth Management’s fee-based assets reached $239.7 billion, up 9% year over year.