First Hawaiian (FHB) – Value in Paradise

First Hawaiian (FHB), as you can probably guess, is headquartered in Honolulu, Hawaii and offers a diversified range of banking services to consumer and commercial customers. When looking at the landscape in the Aloha State, the market is quite consolidated with five banks holding 96% deposit market share. First Hawaiian and Bank of Hawaii (BOH) are tied at 34%, followed by Hawaiian Electric (HE) at 14% which, even though is a utility stock, has a banking segment. Then, you have Central Pacific Financial (CPF) at 11%, and finally Territorial Bancorp (TBNK) at 3%.

Before getting into company metrics, it’s worthwhile to highlight the tourism industry within the state, as its an important piece of the backdrop to Hawaiian banks, not o