First Hawaiian cuts full‑year loan growth outlook to 1%‑2% and guides Q4 net interest margin at 3.34%‑3.35%
First Hawaiian Inc. lowered its 2026 loan‑growth forecast to 1%‑2% after a $115 million decline in Q3 loans, mainly from unexpected commercial‑real‑estate payoffs and residential runoff. The bank also projected fourth‑quarter net interest margin (NIM) of 3.34%‑3.35%, raising the full‑year NIM outlook to 3.26%‑3.27%. Share repurchases were paused pending the pending TriCo merger, and net charge‑offs rose to $21.9 million, or 60 basis points of total loans.
Why it matters
The reduced loan‑growth outlook signals lower earnings potential for the year, while the higher Q4 NIM guidance suggests modest margin expansion. The pause in share buybacks indicates cash will be retained for the TriCo transaction rather than returned to shareholders.
Key facts
- 1Full‑year loan‑growth outlook was cut to 1%‑2% for 2026. tokenpost.com
- 2Q4 net interest margin was guided to 3.34%‑3.35%. tokenpost.com
- 3Total loans declined by $115 million in Q3. finance.yahoo.com
- 4Net charge‑offs were $21.9 million, equal to 60 basis points of total loans. finance.yahoo.com
- 5The company paused share buybacks during the quarter because of the pending TriCo acquisition. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.