FIRST HAWAIIAN, INC. Revenue Disclosure
18. Revenue from Contracts with Customers
In accordance with Topic 606, Revenue from Contracts with Customers, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
Disaggregation of Revenue
During the quarter ended December 31, 2025, the Company realigned its internal organizational and management reporting structure. As a result of this change, the Company reduced its reportable operating segments from three to two. The Company’s reportable segments are now Retail Banking and Commercial Banking. Activities previously reported within the Treasury and Other segment are now included in Corporate/Other, as Treasury exists to support the Company’s operating segments. The change in reportable segments reflects how the Company’s chief operating decision maker currently evaluates performance and allocates resources. In addition, during the third quarter of 2025, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The Company has reported its selected financial information using the new loan and deposit balance alignments and using two reportable operating segments for the year ended December 31, 2025. Prior-period segment information has been recast to conform to the current presentation. See “Note 22. Reportable Operating Segments” for more information.
The following table summarizes the Company’s revenues, which includes net interest income on financial instruments and noninterest income, disaggregated by type of service and business segments and Corporate/Other, for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025 | ||||||||||||
Retail | Commercial | Corporate/ | Consolidated | |||||||||
(dollars in thousands) | | Banking | | Banking | | Other | | Total | ||||
Net interest income (expense)(1) | $ | 517,255 | $ | 177,017 | $ | (30,530) | $ | 663,742 | ||||
Service charges on deposit accounts | 26,523 | 4,719 | 394 | 31,636 | ||||||||
Credit and debit card fees | — | 55,626 | 3,874 | 59,500 | ||||||||
Other service charges and fees | 39,306 | 2,546 | 2,267 | 44,119 | ||||||||
Trust and investment services income | 37,039 | — | (98) | 36,941 | ||||||||
Other | 917 | 7,109 | 4,257 | 12,283 | ||||||||
Not in scope of Topic 606(1) | 7,791 | 8,320 | 16,456 | 32,567 | ||||||||
Total noninterest income | 111,576 | 78,320 | 27,150 | 217,046 | ||||||||
Total revenue | $ | 628,831 | $ | 255,337 | $ | (3,380) | $ | 880,788 | ||||
Year Ended December 31, 2024 | ||||||||||||
Retail | Commercial | Corporate/ | Consolidated | |||||||||
(dollars in thousands) | | Banking | | Banking | | Other | | Total | ||||
Net interest income (expense)(1) | $ | 492,408 | $ | 200,038 | $ | (69,708) | $ | 622,738 | ||||
Service charges on deposit accounts | 26,916 | 3,795 | 379 | 31,090 | ||||||||
Credit and debit card fees | — | 58,115 | 3,986 | 62,101 | ||||||||
Other service charges and fees | 32,182 | 2,511 | 2,318 | 37,011 | ||||||||
Trust and investment services income | 38,306 | — | — | 38,306 | ||||||||
Other | 739 | 9,023 | 7,070 | 16,832 | ||||||||
Not in scope of Topic 606(1) | 7,878 | 5,998 | (13,413) | 463 | ||||||||
Total noninterest income | 106,021 | 79,442 | 340 | 185,803 | ||||||||
Total revenue | $ | 598,429 | $ | 279,480 | $ | (69,368) | $ | 808,541 | ||||
Year Ended December 31, 2023 | ||||||||||||
Retail | Commercial | Corporate/ | Consolidated | |||||||||
(dollars in thousands) | | Banking | | Banking | | Other | | Total | ||||
Net interest income(1) | $ | 445,182 | $ | 188,532 | $ | 2,413 | $ | 636,127 | ||||
Service charges on deposit accounts | 26,432 | 2,786 | 429 | 29,647 | ||||||||
Credit and debit card fees | — | 56,651 | 4,853 | 61,504 | ||||||||
Other service charges and fees | 25,162 | 1,819 | 2,144 | 29,125 | ||||||||
Trust and investment services income | 38,449 | — | — | 38,449 | ||||||||
Other | 539 | 8,622 | 2,870 | 12,031 | ||||||||
Not in scope of Topic 606(1) | 7,069 | 5,480 | 17,510 | 30,059 | ||||||||
Total noninterest income | 97,651 | 75,358 | 27,806 | 200,815 | ||||||||
Total revenue | $ | 542,833 | $ | 263,890 | $ | 30,219 | $ | 836,942 | ||||
| (1) | Most of the Company’s revenue is not within the scope of Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities, derivative financial instruments and bank-owned life insurance. |
For the years ended December 31, 2025, 2024 and 2023, substantially all of the Company’s revenues under the scope of Topic 606 were related to performance obligations satisfied at a point in time.
The following is a discussion of revenues within the scope of Topic 606.
Service Charges on Deposit Accounts
Service charges on deposit accounts relate to fees generated from a variety of deposit products and services rendered to customers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees and monthly service charges. Such fees are recognized concurrent with the event on a daily basis or on a monthly basis depending upon the customer’s cycle date.
Credit and Debit Card Fees
Credit and debit card fees primarily represent revenues earned from interchange fees, ATM fees and merchant processing fees. Interchange and network revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result of surcharges assessed to non-FHB customers who use an FHB ATM. Merchant processing fees are primarily earned on transactions in which FHB is the acquiring bank. Such fees are generally recognized concurrently with the delivery of services on a daily basis.
Trust and Investment Services Fees
Trust and investment services fees represent revenue earned by directing, holding and managing customers’ assets. Fees are generally computed based on a percentage of the previous period’s value of assets under management. The transaction price (i.e., percentage of assets under management) is established at the inception of each contract. Trust and investment services fees also include fees collected when the Company acts as agent or personal representative and executes security transactions, performs collection and disbursement of income, and completes investment management and other administrative tasks.
Other Fees
Other fees primarily include revenues generated from wire transfers, lockboxes, bank issuance of checks and insurance commissions. Such fees are recognized concurrent with the event or on a monthly basis.
Contract Balances
A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. The Company received signing bonuses from three vendors in prior years and one vendor in the current year, which are being amortized over the term of the respective contracts. As of December 31, 2025 and 2024, the Company had contract liabilities of $1.3 million and $2.2 million, respectively, which will be recognized over the remaining term of the respective contracts with the vendors. For the years ended December 31, 2025, 2024 and 2023, the Company recognized revenues, thereby decreasing contract liabilities by approximately $1.0 million, $0.9 million and $0.8 million, respectively, due to the passage of time. There were no changes in contract liabilities due to changes in transaction price estimates.
A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. As of December 31, 2025 and 2024, there were no material receivables from contracts with customers or contract assets recorded on the Company’s consolidated balance sheets.
Other
Except for the contract liabilities noted above, the Company did not have any significant performance obligations as of December 31, 2025 and 2024. The Company also did not have any material contract acquisition costs or use any significant judgments or estimates in recognizing revenue for financial reporting purposes.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.