First Hawaiian (FHB) is back in focus after third quarter 2026 results showed higher net interest income alongside lower net income and earnings per share, a sharp rise in net charge offs, and a reaffirmed quarterly dividend.
Recent trading action around First Hawaiian has been relatively steady, with the share price at US$25.41 and a 30 day share price return of 1.80% contrasted with a 90 day share price decline of 8.99% as investors react to higher credit losses. At the same time, the 3 year total shareholder return of 60.64% indicates that longer term holders have seen materially stronger outcomes than the short term share price suggests.
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For First Hawaiian, a steady share price after rising credit losses leaves a simple tension. Is most of the easy recovery already reflected, or does the current valuation still suggest meaningful upside ahead?
Against the last close of $25.41, the most followed narrative for First Hawaiian points to a fair value of about $29.78, so the debate now shifts to whether the merger assumptions behind that figure still look reasonable.
The all stock acquisition of TriCo Bancshares, which is expected to close near the end of 2026, is planned to create a combined First Hawaiian platform with about US$34b of assets, US$29b of deposits and 117 branches. This structure could support higher revenue from a broader customer base and a larger loan book, potentially lifting earnings power over time.
See why 4 investors see First Hawaiian as 15% undervalued.
Result: Fair Value of $29.78 (UNDERVALUED)
Still, if First Hawaiian struggles to retain low cost deposits or the TriCo integration stumbles, those pressures could quickly challenge the current undervaluation story.
Find out about the key risks to this First Hawaiian narrative.
Sentiment around First Hawaiian is clearly mixed, so it helps to move quickly and check the underlying numbers rather than just the headline story. To see why some investors still see reasons for optimism, go straight to the 5 key rewards.
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