Since April 2026, First Hawaiian Bank has been in a holding pattern, posting a small loss of 1.8% while floating around $25.04. The stock also fell short of the S&P 500’s 16.8% gain during that period.

Is now the time to buy First Hawaiian Bank, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think First Hawaiian Bank Will Underperform?

We don’t have much confidence in First Hawaiian Bank. Here are three reasons why FHB doesn’t excite us, plus one stock we’d rather own.

1. Net Interest Income Points to Soft Demand

Our experience and research show the market cares primarily about a bank’s net interest income growth as one-time fees are considered a lower-quality and non-recurring revenue source.

First Hawaiian Bank’s net interest income has grown at a 5.1% annualized rate over the last five years, much worse than the broader banking industry and in line with its total revenue. Its growth was driven by an increase in its net interest margin, which represents how much a bank earns in relation to its outstanding loans, as its loan book shrank throughout that period.

2. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

First Hawaiian Bank’s EPS grew at a weak 1.6% compounded annual growth rate over the last five years, lower than its 4.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

3. Projected TBVPS Growth Is Slim

A bank’s tangible book value per share (TBVPS) increases when it generates higher net interest margins and keeps credit losses low, allowing it to compound shareholder value over time.

Over the next 12 months, Consensus estimates call for First Hawaiian Bank’s TBVPS to grow by 3.3% to $15.54, lousy growth rate.

Final Judgment

We see the value of companies driving economic growth, but in the case of First Hawaiian Bank, we’re out. With its shares trailing the market in recent months, the stock trades at 1× forward P/B (or $25.04 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. We’d suggest looking at one of our all-time favorite software stocks.

Stocks We Like More Than First Hawaiian Bank

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