First Hawaiian's Near-Term Prospects Have Improved Significantly (Rating Upgrade)

Feb. 18, 2025 5:06 PM ETFirst Hawaiian, Inc. (FHB) StockFHB
Mark Dockray
1.9K Followers
(8min)

Summary

  • First Hawaiian's prospects have perked up significantly since my last update, with shares returning around 19% in that time.
  • Ongoing run-off in the investment portfolio will fund loan growth, and given the rate differential, this will be a tailwind to the bank's lending margin.
  • The shares aren't very cheap, but given the bank's payout ratio, a long-term return in the 9%-10% annualized region is doable from here.
honolulu waikiki skyline, oahu island, hawaii islands

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First Hawaiian, Inc.'s (NASDAQ:FHB) near-term prospects have improved significantly since my last update in the summer. While I have always liked this bank from a quality angle, the near-term outlook for earnings growth was soft back then, meaning a then-multiple of

This article was written by

1.9K Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FHB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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