$176.1 million left First Hawaiian's savings deposits in the latest reported period. That is the oddest number in a filing that otherwise looks straightforward: revenue rose 6.3% to $231.3 million, while net income barely moved, up 0.2% to $73.4 million.
The result is a bank getting more revenue without getting much more profit. Net margin fell from 33.7% to 31.7%, a 1.9 percentage-point step down. Diluted EPS still rose to $0.60, helped by a 2.8% reduction in diluted shares.
Revenue rose alongside a higher cost base, while the margin declined. Noninterest income benefited from items including $1.7 million of excise-tax refunds and an $0.8 million class-action settlement, while noninterest expense increased by $9.8 million in the comparable reported period.
First Hawaiian gave the deposit numbers plainly:
"The decrease in total deposits was primarily due to a $176.1 million decrease in savings deposit balances, a $99.5 million decrease in demand deposit balances, an $80.5 million decrease in time deposit balances and a $5.4 million decrease in money market deposit balances. Total stockholders’ equity was $2.8 billion as of June 30, 2026 and December 31, 2025."
First Hawaiian, 10-Q, Aug. 3, 2026
Savings, demand, time, and money-market balances all declined. The company also said stockholders' equity was unchanged at $2.8 billion, so the disclosed changes were in funding balances while that equity figure was unchanged.
The expense increase was concentrated in people and outside services:
"The increase in noninterest expense was primarily due to a $6.9 million increase in salaries and employee benefits expense, a $1.5 million increase in contracted services and professional fees, a $1.4 million increase in equipment expense, a $0.5 million increase in other noninterest expense and a $0.5 million increase in card rewards program expense, partially offset by a $0.9 million decrease in regulatory assessment and fees. For the six months ended June 30, 2026, we continued to maintain high levels of liquidity and adequate reserves for credit losses."
First Hawaiian, 10-Q, Aug. 3, 2026
Management's explanation is specific: salaries and benefits accounted for most of the increase. It also pointed to high liquidity and adequate credit-loss reserves while discussing the deposit decline.
The annual record adds one useful piece of context. Revenue rose 8.9% in 2025 and annual net margin improved by 2.9 percentage points, so the latest revenue growth follows a stronger prior year. The current period interrupts that margin progression, with expense growth and lower deposit balances arriving alongside the higher top line.
At the latest close, First Hawaiian shares were $27.79, down 0.4% on July 31. The market data does not identify why the stock moved, and the bank's 12.6x trailing P/E provides context without resolving the operating question.
The next quarterly report is where the comparable deposit balances and noninterest expense figures can be checked together. For now, the filing leaves two operating facts in the same frame: revenue is growing, but the deposit base is shrinking and the margin is thinner.
First Hawaiian's latest filing pairs higher revenue with lower deposits and a thinner net margin.