Why First Hawaiian’s latest earnings are drawing attention

First Hawaiian (FHB) is back in focus after its second quarter 2026 earnings showed higher net interest income and net income than a year earlier, alongside updated charge off, dividend and buyback details.

The recent earnings release, higher net interest income and a steady dividend come against a mixed price backdrop, with the share price at $27.57 after a 30 day share price return that is down 8.8%. At the same time, a 1 year total shareholder return of 21.45% and a 3 year total shareholder return of 54.19% point to longer term momentum that has so far held up.

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First Hawaiian’s recent pullback sits against stronger earnings and a steady dividend, which puts the timing question front and center. Is it the better move to step in after this slide, or to wait for a cheaper entry as the valuation picture unfolds next?

Most Popular Narrative: 7.8% Undervalued

On the most followed narrative, First Hawaiian’s fair value of $29.89 sits above the current $27.57 share price. This puts the focus on what is driving that gap.

The analysts have a consensus price target of $29.89 for First Hawaiian based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analysts, you'd need to believe that by 2029, revenues will be $1.0 billion, earnings will come to $301.5 million, and it would be trading on a PE ratio of 13.8x, assuming you use a discount rate of 7.1%.

Want to see what sits under that $29.89 figure for First Hawaiian? The narrative leans on rising top line, firm margins, and a richer future earnings multiple. The exact mix of those inputs might surprise you.

Result: Fair Value of $29.89 (UNDERVALUED)

However, the First Hawaiian story also carries clear risks, including potential deposit outflows and rising credit strain that could pressure funding costs and future earnings expectations.

Next Steps

With the First Hawaiian story showing both support and questions, this is a good time to move quickly, review the key positives, and weigh them against your own risk tolerance through the 4 key rewards

Looking for more First Hawaiian investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.